In a ruling that can only be described as common sense, the state’s top court recently ruled that a foreclosure notice must identify all the secured parties; however, there are circumstances when the failure to identify a secured party is not fatal to a foreclosure action.
In Camille C. Shepherd v. John S. Burson, et al., the Court of Appeals also said that a failure to identify all secured parties in a foreclosure notice does not require dismissal of the foreclosure when the notice identifies one of the secured parties, the notice provides other legally-required required information that allows the borrow to pursue a loan modification, the identity of the other secured parties is disclosed to the borrower well in advance of the foreclosure sale and the borrower does not move to dismiss the foreclosure proceeding on the basis of a defective notice for more than a year after such disclosure.
The court’s ruling stemmed from a lender’s attempt to foreclose on a Greenbelt, Md. home. Camille Shepherd obtained a $416,900 loan from IndyMac in 2007 secured by a deed of trust on the home. She defaulted on the loan in 2008 after having obtained a loan modification that lowered the interest rate and, as a result, lowered her monthly payment. IndyMac transferred its assets to OneWest Bank FSB in 2009 after IndyMac went under in 2007.