Steele Law Prevails in Appeal by Bank Against Homeowners
The Fourth District Court of Appeal recently issued an opinion denying a bank’s attempt to foreclose on a home owned by Joanne and George Buchanan, long time residents of Hobe Sound. The bank, which claimed it bought the Buchanans’ mortgage from the original lender in 2007, could not produce the original promissory note, or sufficient paperwork to show it had the right to enforce the lost note. Steele Law successfully stopped an earlier foreclosure lawsuit filed by a different bank in 2008, which also claimed it owned the Buchanans’ lost mortgage note. Although the law allows a bank to foreclose, even when a mortgage note is lost, the bank must prove how it acquired the right to enforce the note, by providing affidavits and documentation proving how and when it acquired that right. At trial, the bank provided thousands of pages of evidence and numerous affidavits along with sworn testimony that the bank-owned the Buchanans’ lost note. Nevertheless, Steele was able to show the trial judge important inconsistencies between the evidence, affidavits and sworn testimony that both the trial judge and appeals court found troubling. For example, in one affidavit a key document attached to the affidavit shows it was created months after the affidavit was signed.
“We have always wanted to pay our mortgage,” said Mr. Buchanan, “but we’re not going to send money to a bank we’ve never heard of simply because they claim they bought the right to enforce our note.” Mrs. Buchanan added, “We’re thrilled with the result in this case and proud of the work done by Mr. Steele on our behalf over the last seven years.”
The Buchanans are now considering filing suit against the bank for malicious prosecution and abuse of process.