Barry M. Klayman and Mark E. Felger ()
In Shrewsbury v. The Bank of New York Mellon, No. 306, 2016 (Del. Apr. 17, 2017), a divided Delaware Supreme Court held that a mortgage assignee must be entitled to enforce the underlying obligation that the mortgage secures in order to foreclose on the mortgage. The decision means that the mortgage holder in a foreclosure action must also prove that it owns the underlying note. The majority opinion, while eschewing the notion that it was imposing a new pleading requirement for mortgage foreclosure actions, nevertheless suggested that best practice for plaintiffs counsel in a foreclosure action where a mortgage has been assigned would be to include an averment that the note, as well as the mortgage, was assigned to the plaintiff.
*May exclude premium content
Already have an account? Sign In Now
Interested in customizing your subscription with Law.com All Access?
Contact our Sales Professionals at 1-855-808-4530 or send an email to firstname.lastname@example.org to learn more.