Justia Real Estate & Property Law Opinion Summaries

The decedent, who owned property in Rhode Island, entered into a reverse mortgage with Financial Freedom providing that the full amount of the debt would become due and payable upon the borrower’s death. Financial Freedom subsequently assigned the mortgage to Mortgage Electronic Registration Systems, Inc. as a nominee of Financial Freedom. After the decedent died, the probate court granted the decedent’s interest in the property to Plaintiffs, the decedent’s son and daughter. Thereafter, Plaintiffs received a notice of foreclosure, foreclosure proceedings went forward, and the mortgage was reassigned to Financial Freedom. Plaintiffs sued in federal district court, contesting the validity of the serial mortgage assignments and the foreclosure itself. The district court granted summary judgment for Financial Freedom. The son appealed. The First Circuit affirmed, holding (2) Plaintiff lacked standing to challenge the mortgage assignments; and (2) Financial Freedom’s failure to file a claim in the probate proceedings did not pretermit its right to foreclosure on the property. View "Summers v. Fin. Freedom Acquisition LLC" on Justia Law