Real Property & Title Insurance Update: Week Ending February 10, 2017

REAL PROPERTY UPDATE

• Foreclosure: where foreclosing bank, who purchased debt from original mortgagee, failed to establish standing to enforce lost note “through evidence of a valid assignment, proof of purchase of the debt, or evidence of an effective transfer,” summary judgment in favor of foreclosing bank improper Houk v. PennyMac Corp. , Case No. 2D15-2583  (Fla. 2d DCA February 10, 2017) (reversed and remanded).
• Foreclosure/Standing:  where foreclosing bank filed original note bearing blank indorsement with original complaint, it sufficiently established standing to enforce note -U.S. Bank, N.A. v. Becker, Case No. 4D15-4615 (Fla. 4th DCA February 8, 2017) (reversed and remanded).
• Foreclosure/Removal: trial court lacked jurisdiction to render final summary judgment where defendants had filed a notice of removal to federal court and federal court had not yet remanded case back to trial court - Mawhinney v. 998 SW 144th Court Rd, LLC, Case Nos. 5D15-2185; 5D15-2819  (Fla. 5th DCA February 10, 2017) (reversed and remanded).

 TITLE INSURANCE UPDATE

• Full Credit Bid: Section 2 of the 1992 ALTA lender’s policy applies when a lender purchases property by full or partial-credit bid at a trustee’s sale – Equity Income Partners, LP v. Chicago Title Ins. Co., Case No. CV-16-0162-CQ (Ariz. Feb. 7, 2017)(answering certified question from 9^th Circuit Court of Appeals)
• Full Credit Bid: a lender’s full or partial-credit bid at a trustee’s sale is not a “payment”  or “payment made” under a 1992 ALTA lender’s policy because to do so would render Section 2 meaningless and contravene Arizona public policy of protecting debtors – Equity Income Partners, LP v. Chicago Title Ins. Co.,, Case No. CV-16-0162-CQ (Ariz. Feb. 7, 2017)(answering certified question from 9^th Circuit Court of Appeals)
• Full Credit Bid: a lender’s full or partial-credit bid at a trustee’s sale does not terminate coverage under Section 2(a)(i), reduce coverage under Section 2, or any possible liability under Section 7 of a 1992 ALTA lender’s policy – Equity Income Partners, LP v. Chicago Title Ins. Co.,, Case No. CV-16-0162-CQ (Ariz. Feb. 7, 2017)(answering certified question from 9^th Circuit Court of Appeals)