Nationstar Mortgage, LLC v. Weiler
227 So. 3d 181
| Fla. Dist. Ct. App. | 2017Background
- MIPC obtained a final foreclosure judgment in December 2014 and sold the property at foreclosure sale in January 2015; later the purchaser sold to the Weilers in June 2015.
- Nationstar, claiming to be holder of the original note and first mortgagee, moved to intervene and filed a motion to vacate the certificate of title, certificate of sale, and final judgment in November 2015, alleging MIPC never surrendered the original promissory note.
- The trial court granted intervention and set an evidentiary hearing expressly on Nationstar’s motion to vacate. The order was served on the Weilers, who were nonparties.
- At the hearing Nationstar focused on MIPC’s failure to produce the original note; the Weilers, allowed by the court to participate, argued instead that section 48.23’s lis pendens effect barred Nationstar’s unrecorded interest and that they were bona fide purchasers — introducing a Weiler affidavit.
- The trial court denied Nationstar’s motion to vacate, finding Nationstar’s interest discharged under section 48.23 and that the Weilers were bona fide purchasers; Nationstar appealed.
Issues
| Issue | Nationstar's Argument | Weilers'/Trial Court's Argument | Held |
|---|---|---|---|
| Whether the court violated Nationstar's procedural due process by expanding the hearing scope beyond notice | Hearing was limited to whether the judgment should be vacated for failure to file the original note; Nationstar had no notice to litigate lis pendens or bona fide purchaser issues | Court allowed Weilers to litigate lis pendens discharge and bona fide purchaser defenses at the same hearing | Reversed: court violated due process by resolving matters not within the noticed scope of the hearing |
| Whether trial court could adjudicate rights of nonparties (subject-matter jurisdiction/procedural posture) | Court lacked authority to determine Weilers’ rights because they were not proper parties or had not filed pleadings invoking jurisdiction | Court treated Weilers’ submissions as properly before it and decided their rights | Not reached on merits — resolution of due process issue made this unnecessary (Nationstar can raise on remand) |
| Whether section 48.23 discharged Nationstar’s unrecorded assignment of mortgage | Assignment of mortgage not enforceable because Nationstar failed to record before lis pendens; statute bars unrecorded interests | Nationstar disputes applicability and contends relief should be limited to vacating judgment due to missing original note | Not decided because due process error required vacatur and remand |
| Whether the Weilers were bona fide purchasers whose title cannot be defeated | Weilers claimed bona fide purchaser status and submitted affidavit of no prior notice | Nationstar argued it had no opportunity to rebut affidavit or present evidence on bona fide purchaser issue | Not decided on appeal; trial court’s finding vacated by reversal for due process defect |
Key Cases Cited
- Levitt v. Levitt, 454 So. 2d 1070 (Fla. 2d DCA 1984) (trial court may not decide matters not included in notice of hearing)
- Barreiro v. Barreiro, 377 So. 2d 999 (Fla. 3d DCA 1979) (courts cannot expand hearing scope without prior notice and pleadings)
- Hully v. Hully, 653 So. 2d 1138 (Fla. 2d DCA 1995) (hearing on one matter cannot be used to decide unscheduled issues)
- Crescenzo v. Marshall, 199 So. 3d 353 (Fla. 2d DCA 2016) (review standard for due process compliance is de novo)