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Crosley Legal, LLC

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Foreclosure Reinstated

Posted on September 19, 2013 at 4:29 PM Comments comments (14)
In Beneficial Mortgage Co. of Indiana v. Sharon Hatton, a/k/a Sharon J. Hatton, First Select, Inc., Calvary SPV, II, LLC, and Discover Bank, 45A03-1212-MF-531, the trial court granted the debtor's motion to dismiss, which was based on an error in the legal description on the mortgage and a standing argument.  

The discussion of the legal description and reformation thereof is the more interesting issue in that the trial court indicated that the creditor would be unable to prove mutual mistake of fact because the original debtor was deceased.  This reasoning was rejected for several reasons.  The standing argument was shot down because the plaintiff/creditor is successor by merger to the original mortgagee, and proof of the merger was attached to the amended complaint.

For the full text of the opinion click here