Former Owner Cannot Challenge Foreclosure Procedure In Forcible Detainer Action

more+
less-
more+
less-

In McDaniel v. HSBC Bank USA, NA, McDaniel appealed a trial court's granting a bank possession of real property purchased at a foreclosure sale. No. 05-11-00238-CV, 2013 Tex. App. LEXIS 1079 (Tex. App.—Dallas February 6, 2013, no pet. history). The deed of trust stated that the original mortgagee was "Mortgage Electronic Registration Systems, Inc.," ("MERS") and the foreclosure sale deed listed the current mortgagee as “HSBC Bank USA, NA.” McDaniel argued that the bank failed to show that it was entitled to enforce the deed of trust because it presented no evidence of a transfer of the deed of trust from MERS. The court of appeals affirmed the judgment of possession for the bank stating that the validity of a foreclosure sale may not be determined in a suit for forcible detainer and must be brought in a separate suit. To prevail in a forcible detainer action, a bank merely has to prove that it owned the property by virtue of a foreclosure sale deed, that the former owner became the tenant at sufferance when the property was sold under the deed of trust, that the bank gave notice to vacate the premises, and that the former owner refused to vacate the premises. Because the bank presented evidence to support these elements, the court affirmed the judgment.