In re Foreclosure of BassAnnotate this Case
In 2005, Tonya Bass executed an adjustable rate promissory note with Mortgage Lenders Network USA. The Note was then transferred several times: from Mortgage Lenders to Emax Financial Group, from Emax to Residential Funding Corporation, and from Residential Funding to U.S. Bank. The Note evidenced these transfers by three stamped imprints. In 2009, U.S. Bank filed this foreclosure action after Bass failed to make timely payments. The trial court dismissed the foreclosure action, concluding that because the Note was not properly indorsed and conveyed to Emax or Residential Funding, U.S. Bank was not the rightful holder of the Note. The court based its ruling that the first stamp was "unsigned" and failed to establish negotiation from Mortgage Lenders to Emax. The Supreme Court reversed, holding (1) the indorsements on the Note unambiguously indicated the intent to transfer the Note from each preceding lender and finally to U.S. Bank; and (2) therefore, U.S. Bank was the holder of the Note and had the authority to bring this foreclosure action against Bass.