Showing 4 posts in Rhode Island Supreme Court.

Rhode Island Supreme Court Continues to Strictly Interpret "Clear and Unforgiving" Statutory Language Regarding Court-Approved Redemptions from Tax Sale Proceedings

September 26, 2023 by Brooke Ackerman*, Samuel C. Bodurtha

In Westconnaug Recovery Co., LLC v. U.S. Bank N.A, the Rhode Island Supreme Court has continued to rule against redemption and in favor of strict application of the Rhode Island's Tax Title Act. Specifically, an interested party must assert a statutory right to redemption under § 44-9-29 even if initially contesting the validity of tax title under § 44-9-31 in response to a foreclosure proceeding. More ›

Rhode Island Supreme Court Concludes that Door Hanger Left by Mortgage Servicer Prior to Foreclosure Satisfied HUD Face-to-Face Requirement

June 20, 2023 by Donald W. Seeley Jr.

In Montaquila v. Flagstar Bank, the Rhode Island Supreme Court rejected a borrower's attempt to expand the plain language of the U.S. Department of Housing and Urban Development's (HUD) federal regulation requiring loan servicers of FHA-backed mortgages to conduct a face-to-face meeting or make a "reasonable effort" to arrange a face-to-face meeting with the borrower prior to foreclosing. In reaching this conclusion, the court noted that the regulation only requires a trip to the property to arrange a face-to-face meeting; the actual face-to-face meeting is not required at this visit. More ›

Rhode Island Supreme Court Demands Strict Compliance with Fannie Mae/Freddie Mac "Paragraph 22" in Foreclosures

June 15, 2020 by Hinshaw & Culbertson LLP

In a case of first impression, the Rhode Island Supreme Court concluded in Woel v. Christiana Trust that mortgage default notices sent to borrowers must strictly comply with the notice requirements included in a mortgage. The Court held that a lender's notice of default does not strictly comply with the terms of the standard Fannie Mae/Freddie Mac mortgage Paragraph 22, if the notice fails to inform the borrower of the right to reinstate after acceleration. More ›

Another Court Refuses Lost Note Status to a Successor Lender

November 13, 2018 by Samuel C. Bodurtha

Last year, we reported on a Massachusetts Land Court decision, which interpreted Uniform Commercial Code section 3-309 to conclude that a mortgagee cannot foreclose in reliance upon a lost note affidavit, because the 1990 version of UCC 3-309 requires the party seeking to enforce the note demonstrate possession prior to its loss. 32 states remain under the 1990 version, and recently the Rhode Island Supreme Court joined decisions that prohibit enforcement of a lost note under this outdated version of the UCC. In SMS Fin. v. Corsetti, SMS Financial sued to enforce default on a note that was lost by a prior transferee. Sovereign Bank had loaned the defendants $1 million in exchange for a promissory note and a mortgage on property located at 385 South Main Street in Providence, Rhode Island. Following default and foreclosure, the defendants issued to Sovereign a new promissory note to repay the $200,000 deficiency on the original loan. Sovereign subsequently assigned its interest in the loan to SMS Financial; but, Sovereign had lost the original note so it delivered to SMS a lost note affidavit and an allonge. SMS filed suit against the defendants to collect on breach of the note, but the Superior Court entered summary judgment in favor of the defendants because SMS could not enforce the lost note. More ›

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