179 So. 3d 1026
Miss.2015Background
- Hobson bid the highest at a foreclosure sale in Warren County; sale disclaimer warned it could be withdrawn if the obligor reinstated timely.
- Quimby, the defaulting borrower, reinstated her loan with Chase prior to the sale; Hobson’s cashier’s check was returned because the lender hadn’t been informed of reinstatement.
- On remand, joint stipulation showed Quimby paid $4,840.49 to reinstate; $912.76 foreclosure fee was reversed, not charged.
- County Court granted Hobson summary judgment; circuit court affirmed; this Court reversed, remanding for a determination of whether Quimby reinstated prior to sale.
- On remand, evidence showed Quimby timely paid the reinstatement amount; Chase/Priority argued reinstatement complied with the statute; Hobson argued it did not.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge reinstatement under § 89-1-59 | Hobson has colorable interest as purchaser | Hobson lacks beneficiary status and standing | Hobson had standing to challenge reinstatement |
| Whether Quimby properly reinstated the loan under § 89-1-59 | Quimby did not pay all accrued costs, so no proper reinstatement | Payment complied with the instrument; fees waived by reversal | Quimby properly reinstated; sale void if not reinstated but valid here due to waiver |
| Caveat emptor applicability to foreclosure sales | Caveat emptor protects Hobson from issues of authority | Caveat emptor governs foreclosure purchases; buyer bears risk | Caveat emptor applied; buyer bears risk of defective title |
Key Cases Cited
- Weems v. Transamerica Mortg. Co., 770 So. 2d 936 (Miss. 2000) (safety-net purpose of § 89-1-59; standing analysis separate)
- Hobson v. Chase Home Finance, LLC (Hobson I), 81 So. 3d 1097 (Miss. 2012) (reinstatement issues remanded for factual determination)
- Kaiser Invs., Inc. v. Davis, 538 So. 2d 427 (Miss. 1989) (reinstatement requires payment of accrued costs, etc.)
- Canizaro v. Mobile Commc’ns Corp. of Am., 655 So. 2d 25 (Miss. 1995) (waiver of contractual rights by conduct or words allowed)
- Basiliko v. Pargo Corp., 532 A.2d 1346 (D.C. App. 1987) (caveat emptor; limitations of remedies after sale)
- Hill v. Thompson, 564 So. 2d 1 (Miss. 1989) (caveat emptor applies to foreclosure sales)
- Parsons v. Marshall, 243 Miss. 719 (Miss. 1962) (tax sale and caveat emptor doctrine)