Preview:

REL:

06/22/2012

Notice: T h i s o p i n i o n i s s u b j e c t t o formal r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e R e p o r t e r o f D e c i s i o n s , Alabama A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ((334) 2 2 9 - 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r .

ALABAMA COURT OF CIVIL
OCTOBER TERM, 2011-2012

APPEALS

2100453

Evelyn Coleman v. BAC S e r v i c i n g , agent f o r the S e c r e t a r y o f Veterans A f f a i r s , an o f f i c e r o f the U n i t e d S t a t e s o f America Appeal from J e f f e r s o n C i r c u i t (CV-09-903114) Court

On A p p l i c a t i o n f o r R e h e a r i n g PITTMAN, This and Judge. court's opinion of February 3, 2 0 1 2 , i s w i t h d r a w n

the following i ss u b s t i t u t e d therefor.

2100453 E v e l y n C o l e m a n a p p e a l s f r o m a summary j u d g m e n t e n t e r e d i n favor o f BAC Servicing ("BAC"), agent f o r the Secretary of

Veterans A f f a i r s , ("the S e c r e t a r y " ) ,

an o f f i c e r

of the United action.

States We

of America

i n an e j e c t m e n t

affirm.

Facts

and P r o c e d u r a l Coleman

History a

On N o v e m b e r 3 0 , 1 9 9 4 , loan in the amount of

and h e r husband o b t a i n e d from Johnson a &

$93,215 to

Associates The

Mortgage

Company

("Johnson")

purchase

house.

Colemans e x e c u t e d a p r o m i s s o r y note and a mortgage t o Johnson. On May to 31, 1995, J o h n s o n a s s i g n e d i t s M o r t g a g e Company i n t e r e s t i n the mortgage ("Trans F i n a n c i a l " ) . On

Trans F i n a n c i a l

D e c e m b e r 2, 2 0 0 0 , F i r s t a r B a n k , a l l e g e d t o b e t h e s u c c e s s o r i n i n t e r e s t to Trans F i n a n c i a l , Electronic Registrations a s s i g n e d the mortgage t o Mortgage Inc. ("MERS"), as nominee

Systems, Inc.

f o r Lehman B r o t h e r s H o l d i n g s , judgment motion, BAC

I n s u p p o r t o f i t s summaryevidence indicating that

submitted

M i d F i r s t B a n k h a d a c q u i r e d p o s s e s s i o n o f t h e n o t e on 17, 2005. Coleman's Evelyn Coleman husband died on April 1, 2007,

September

after

which

used the couple's

savings

and t h e p r o c e e d s o f due

policies

i n s u r i n g her husband's l i f e

t o make t h e p a y m e n t s

2

2100453 on the mortgage indebtedness. According 2009, t o Coleman, and Coleman those failed and BAC

funds had been to make the

depleted

by February payments due

mortgage

i n February,

March,

April

2009.

In support

o f i t s summary-judgment m o t i o n ,

submitted evidence MidFirst's default on operating April 8,

i n d i c a t i n g t h a t M i d l a n d M o r t g a g e Company, subsidiary, 2009, and had s e n t Coleman that an attorney a notice retained of by 24,

M i d F i r s t had sent Coleman a n o t i c e 2009. On property 25, July 28, 2009, MidFirst

o f a c c e l e r a t i o n on J u l y

conveyed i t s i n t e r e s t i n the
1

to the Secretary 1, and August

by s p e c i a l w a r r a n t y deed. 8, 2009, notice of the

On

July

August

foreclosure Alabama of

sale regarding

Coleman's p r o p e r t y identified

was p u b l i s h e d MidFirst

i n The

Messenger; the notice the mortgage. Brothers

as t h e a s s i g n e e

On A u g u s t 2 7 , 2 0 0 9 , MERS, a s n o m i n e e Inc., assigned the On the mortgage

f o r Lehman and "[t]he by the

Holdings, note to

promissory mortgage"

evidencing
2

indebtedness September 1,

secured 2009,

MidFirst.

MidFirst

T h e d e e d was r e c o r d e d O f f i c e on N o v e m b e r 9, 2 0 0 9 .
1 2

i n the

Jefferson the

County

Probate County

T h e a s s i g n m e n t was recorded i n P r o b a t e O f f i c e on S e p t e m b e r 9, 2 0 0 9 . 3

Jefferson

2100453 purchased the property The same f o r $81,132.97 a t t h e f o r e c l o s u r e attorney sent Coleman sale.

day, M i d F i r s t ' s of the

a demand f o r

possession On

property. 28, 2009, BAC filed a complaint Coleman also i n the from the a

September Circuit

Jefferson property. defendant. for

Court

seeking late

to eject was

Coleman's

husband

named

as

On N o v e m b e r 1 1 , 2 0 0 9 , o n e d a y a f t e r C o l e m a n ' s the complaint entry of had a expired, default dismiss 12, 2009, BAC filed

time an

answering

application Coleman Coleman's

f o r the

judgment any claim

against as t o obtained

a n d moved husband.

to voluntarily On November

Coleman

counsel and answered t h e complaint, a s s e r t i n g t h e a f f i r m a t i v e defenses of defective notice, defective sale, and court wrongful entered

foreclosure.

On N o v e m b e r 1 5 , 2 0 0 9 ,

the t r i a l

a d e f a u l t judgment a g a i n s t to set the Coleman's aside husband.

Coleman and d i s m i s s e d

t h e a c t i o n as court

On N o v e m b e r 2 0 , 2 0 0 9 , judgment trial BAC BAC against

the t r i a l and

the default

Coleman

restored

case t o the a c t i v e Following

docket. moved for a summary judgment. the 8,

discovery, motion,

In

support

of that

submitted

the following: dated A p r i l

note; the mortgage; a notice-of-default

letter

4

2100453 2009, from M i d l a n d Mortgage letter Company t o C o l e m a n ; a notice-of24, 2009, of the three Trans

acceleration from

a d d r e s s e d t o Coleman d a t e d J u l y by M i d F i r s t ; a sworn

an a t t o r n e y

retained

copy of to

published assignments Financial, certified

foreclosure of from the

notice; mortgage

certified -from

copies Johnson MERS

Firstar of

t o MERS, a n d f r o m

to MidFirst; deed and the andt h e

copies

MidFirst's

foreclosure

s p e c i a l w a r r a n t y deed affidavit With executed of Melissa respect i n favor

from M i d F i r s t Poage, v i c e

to the Secretary;

president note

of MidFirst. that 30, Coleman had

to the promissory o f Johnson copy

on November of the note,

1994, Poage had been The first

authenticated stamped on

MidFirst's i t s face

which

with

two

indorsements.

indorsement Trans

i s stamped "Without r e c o u r s e , pay t o t h e o r d e r o f Mortgage I n c . , by Company. Betty J. Johnson Knight." & Associates The second

Financial Co.,

Mortgage

indorsement

i s stamped: "Pay t o The O r d e r o f

Without Recourse This day of , 19 T r a n s F i n a n c i a l M o r t g a g e Company / s / J a m e s K. O l i v e r J a m e s K. O l i v e r , E x e c u t i v e V i c e P r e s i d e n t "

5

2100453 Poage note stated "[p]rior that MidFirst had acquired i t s i n t e r e s t i n the made t h e

to the i n i t i a t i o n action."

of the foreclosure

subject

of this

Coleman judgment affidavit; foreclosure

filed

a response i n opposition among the other

t o BAC's

summaryher and own the (1)

motion, attaching, she deed argued were that void

materials, sale

foreclosure

f o r the following to exercise

reasons:

M i d F i r s t d i d n o t have t h e r i g h t

t h e power

of sale

u n d e r t h e m o r t g a g e b e c a u s e , C o l e m a n s a i d , M i d F i r s t was n o t t h e assignee o f t h e mortgage proceedings; o r t h e n o t e when (2) M i d F i r s t had i t commenced t h e failed to comply (3)

foreclosure with

the notice had

requirements

i n t h e mortgage with the

instrument; statutory

MidFirst

failed

t o comply

notice Coleman on the MERS 27,

requirements said, July

i n

Download 2100453-0.pdf

Alabama Law