VFC Partners 25 LLC v. Scranton Center Holdings, LP
1:10-cv-01251
M.D. Penn.May 31, 2012Background
- Bank of America filed for summary judgment to foreclose on SCH’s property at 401 Adams Avenue, Scranton, PA, under a mortgage securing a Wells Fargo loan.
- The May 19, 2005 loan totaled $6,000,000 and was secured by a mortgage to MERS as Wells Fargo’s nominee, recorded June 22, 2005 in Lackawanna County.
- SCH admits it has not paid on the loan since on or before December 1, 2009, though SCH disputes being in default.
- Plaintiff asserts it holds the note with a stamped indorsement and the mortgage, and that MERS/MERS-assigned mortgage and related documents support its standing.
- Assignment of the mortgage allegedly became effective March 1, 2006 and was recorded May 26, 2010; SCH challenges the admissibility of the assignments.
- The court granted summary judgment for Bank of America, finding standing and a default, and ordered foreclosure and sale of the mortgaged property.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does BOA have standing to foreclose? | BOA possesses the note with indorsement and the mortgage; assignment shows holder status. | BOA failed to prove admissible evidence of the assignment and holder status. | BOA has standing to bring the action. |
| Did SCH default on the loan/mortgage? | SCH admits nonpayment since December 2009 per admissions; default occurred under loan terms. | SCH disputes default despite nonpayment. | SCH is in default under the mortgage terms. |
| Is there admissible evidence of the assignment and standing? | Note, mortgage, assignment, and damages affidavit establish standing. | No witness authentication for the assignment; evidence insufficient. | Evidence supports standing and there is no genuine issue of material fact on assignment. |
Key Cases Cited
- Lawrence v. City of Philadelphia, 527 F.3d 299 (3d Cir. 2008) (summary judgment standard and favorable view of evidence)
- Roth v. Norfalco, 651 F.3d 367 (3d Cir. 2011) (material facts and inferences viewed in light most favorable to nonmovant)
- Lamont v. New Jersey, 637 F.3d 177 (3d Cir. 2011) (standard for evaluating summary judgment evidence)
- First Wisconsin Trust Co. v. Strausser, 653 A.2d 688 (Pa. Super. 1995) (general denials constitute admissions in mortgage foreclosure)
- Chemical Bank v. Dippolito, 897 F. Supp. 221 (E.D. Pa. 1995) (mortgage foreclosure standing and default foundations)