What Void Can and Cannot Do in Texas Law

In one of the many unpublished cases dismissing “split-the-note” cases after Martins v. BAC Home Loans Servicing, LP, 722 F.3d 249 (5th Cir. 2013), the Fifth Circuit addressed a foreclosure sale that had taken place while a TRO purported to stop it.

REAVLEY, THOMAS M.

ELROD, JENNIFER W.

HAYNES, CATHARINA

Hall v. BAC Home Loans Servicing, No. 12-41023 (Oct. 7, 2013, unpublished).

Because the TRO did not state why it was granted without notice, the Court concluded that it “did not meet the requirements of Texas Rule of Civil Procedure 680,” making it “void under Texas law” and “a mere nullity.”

Accordingly, it could not support a wrongful foreclosure claim.

So let’s get this in perspective folks, a shaky reason for voiding the TRO means the wrongful foreclosure claim was tossed, yet a Void Deed of Trust doesn’t toss the foreclosure by a Bank.  Get the picture?