MTGLQ Investors, L.P. v. Alley

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Linda Shelley executed a note in favor of First Magnus Financial Corporation. On the same day, Linda and John Shelley executed a mortgage on certain property as security for the loan. The note was endorsed in blank and was eventually held by MTGLQ Investors, L.P. John and Linda later deed the property to Shelley Alley. After Linda died, the note went into default. Wells Fargo Bank, N.A. filed a foreclosure complaint, naming John Shelley as the defendant and Alley as a party in interest. The trial court entered a judgment of foreclosure in favor of MTGLQ. The Supreme Judicial Court held that the debtor - presumably, the Estate of Linda Shelley - was a necessary party to this foreclosure action. Because the debtor was not named as a party in this matter, and court vacated the judgment of foreclosure and remanded with instructions to dismiss the matter without prejudice. View "MTGLQ Investors, L.P. v. Alley" on Justia Law