Last-Minute Injunction Prevents Foreclosure by Mortgage Servicer Provident Funding
With a foreclosure set for just before the Labor Day holiday, the mortgage servicer Provident Funding had plans to foreclose on a Middlesex County home.
The foreclosure, however, suffered from major paperwork flaws, according to a complaint filed by Culik Law in Middlesex Superior Court.
First, the complaint claimed that the lender sent a defective notice of right to cure, a mandatory pre-foreclosure letter that must be sent prior to foreclosure under Massachusetts General Laws chapter 244, section 35A.
Under the Supreme Judicial Court’s decision in U.S. Bank v. Schumacher, a homeowner is entitled to file suit to stop a foreclosure if such a notice is faulty.
And second, the foreclosure should have been conducted in the name of Freddie Mac, the true owner of the mortgage and note.
After a hearing in Superior Court, the judge granted an injunction stopping the foreclosure. The judge’s order stated that the homeowner “demonstrated a likelihood of success on the merits” and “is likely to suffer irreparable harm if the injunction does not issue.”
This case is another in a series of cases since the Schumacher decision allowing homeowners to stop unlawful foreclosures if banks and mortgage servicers do not comply with the Massachusetts right-to-cure law.