On Friday, August 12, 2011, the Alabama Supreme Court released a decision that is more important for the questions it raises than the answers it provides.
The appeal came about after the assignee of a mortgage foreclosed on the mortgage and then sued for the $1MM+ deficiency. The property, and the lawsuit, were in Baldwin County.
The borrower claimed the lawsuit and foreclosure should be thrown out because of defects in the assignment. The borrower apparently focused on the wrong “defects” and lost the appeal.
The important part of the decision focuses on an apparent mass-notarization of blank mortgage assignment forms, which were then completed later when the lender decided who would get to buy the mortgages. The trial judge commented:
The Alabama Supreme Court apparently thought that was a very interesting observation, but said, “However, the defendants’ trial counsel did not object to the admissibility of the mortgage assignment on that basis” so it could not be considered in the appeal.
I wonder if that trial judge in Baldwin County was on to something. Do we have our own version of Robo-signing in Alabama? Read the decision, RCH IV-WB, LLC v. Wolf Bay Partners, LLC.
Tell me what you think!