Here’s a summary by a Dallas lawyer about a recent opinion in a real estate foreclosure dispute. He summarizes the current state of the law on some key principles (in his views):
- When a national bank is sued as trustee in such a case, its citizenship controls the analysis of diversity, not that of the investors in the trust (applying and distinguishing Americold Realty Trust v. ConAgra Foods, 136 S. Ct. 1012 (2016));
- Because “Texas follows the common-law maxim that the mortgage follows the note,” the trustee was “entitled to foreclosure on the property as holder of the note even if the assignment of the Deed of Trust was void observes as trustee of a real estate investment trust”; and
- A fraud claim failed when the aggrieved party “did not allege that he initially intended to bid on the property before learning of a potential buyer and changed his position after speaking with U.S. Bank’s representatives.”
SGK Properties LLC v. US Bank, N.A., No. 17-20130 (Feb. 9, 2018).
Really? It’s a Void Deed of Trust, but Foreclose Anyway Bankers…