A federal judge in Minnesota reversed a Nationstar Mortgage LLC foreclosure. Dual tracking on a loan with a modification application in place was at issue.
The case involved borrowers Robert A. Mann and Laurinda M. Holm, who originally filed their complaint in Minnesota’s Hennepin County District Court in December 2013.
In July 2005, the pair signed a note that was secured by a mortgage on the Minneapolis home for $233,900. The loans was from State Bank of Long Lake.
The mortgage was assigned to Bank of America, and BofA subsequently assigned it to Nationstar.
The borrowers became delinquent around the middle of 2011. An April 2013 notice of pendency by Nationstar indicated that the loan balance was $214,157.
A loan modification application was submitted by the borrowers on the last day of October 2013. Less than a week later, Nationstar requested additional information from the plaintiffs.
The requested materials were reportedly provided to the defendant by the borrowers on Nov. 12, 2013.
But two days later, Nationstar sold the property by sheriff’s sale. The certificate of sale, which indicated a five-week redemption period, was recorded the following month.
The borrowers filed a lawsuit in in Hennepin County District Court in December 2013, and the case was
removed to federal court in January 2014.
Nationstar filed a motion to dismiss, which was granted on two counts but not on two others.
The plaintiff appealed, arguing that they were
entitled to summary judgment on the remaining counts.
“Count II alleges that the sheriff’s sale of the property was void for defendant’s failure to the record the sheriff’s certificate within the time period set forth by Minn. Stat. § 580.12,” the U.S. District Court decision states. “In count III, plaintiffs claim that defendant failed to comply with Minn. Stat. § 582.043, subd. 6, based on its failure to postpone the sheriff’s sale despite having timely received plaintiffs’ loan modification application. Plaintiffs seek a declaration finding the sheriff’s sale void.”
On Tuesday, U.S. District Judge Michael J. Davis granted the borrowers’ motion for summary judgment.
“Having received plaintiffs’ loan modification application more than seven days in advance of the sheriff’s sale, including ‘core documents,’ a plain reading of the statute counsels that defendant was obligated to halt the sale,” the decision states. “There being no disputed issues of material fact as to plaintiffs’ § 582.043 claim, the court grants summary judgment on count III.”
In addition, Davis declared the November 2013 foreclosure void.
Mortgage Daily requested a statement from Nationstar about the decision.
“As a matter of practice, we don’t comment on litigation,” John Hoffmann, Nationstar media relations, responded in a written statement. “So I won’t be able to provide a statement to you.”
