Sunday, April 10, 2011

Possession Of Note Payable To Bearer Entitled Lender To Seek Foreclosure

In Isaac v. Deutsche Bank National Trust Company (4D09-3036), the appellant argued "that Deutsche Bank failed to provide sufficient documentation reflecting how it obtained ownership of the mortgage and note from the original assignee, an entity called Option One."  In response to the appellants argument, the court stated:
To  prove  its  ownership,  Deutsche  Bank  filed  with  the  court  the original mortgage, note, and an allonge  from Option One, payable to bearer, together with the aforementioned affidavit.   The allonge, signed by an assistant secretary of Option One, did not state a payee.  In this case, because the allonge did not state a payee, the note is “payable to bearer.”...
The court stated:
Deutsche Bank, by virtue of its possession of an instrument payable to bearer, is a valid holder of the note and, therefore, is entitled to enforce it.  The affidavit from Option One’s successor in interest, also uncontested, provides proof of Deutsche Bank’s right to foreclose the mortgage....
Because no genuine issue of material fact remained, the trial court properly entered summary judgment for the bank.


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