Matters
Successfully Defended a Lender’s Right to Foreclosure
Successfully defended a lender in Anne Arundel County Circuit Court and on appeal against multiple challenges to the validity of the lender’s right to foreclose on real property. The case involved the issue of whether the lender could properly foreclose under a deed of trust which it had acquired by way of assignment from an originating lender. Challenges to the validity of the assignment were raised by way of exceptions to the foreclosure sale filed by a subsequent lender and a straw purchaser of the property--likely involved in a foreclosure rescue scheme. The Circuit Court rejected those challenges and entered a final order of ratification. A subsequent declaratory judgment action brought by the losing parties in their attempt to raise the same challenges to the lender’s right to foreclose was later dismissed based upon principles of res judicata. The judgments entered in both the foreclosure action and the declaratory judgment action were affirmed by the Court of Special Appeals.
