Hayden v. HSBC Bank USA, N.A., No. 16-2274 (1st Cir. 2020)Annotate this Case
The First Circuit summarily affirmed the district court’s dismissal of Plaintiffs’ claims that HSBC Bank USA, N.A. could not foreclose on their property under Mass. Gen. Laws ch. 244, 14 and that the mortgage encumbering their property was obsolete by operation of Mass. Gen. Laws ch. 260, 33, holding that the district court did not err in dismissing the claims.
Plaintiffs borrowed money from a lender to purchase property. Plaintiffs executed a promissory note and mortgage identifying Mortgage Electronic Registration Systems, Inc. (MERS) as the mortgagee. MERS later assigned the mortgage to HSBC. After Plaintiffs defaulted on their loan HSBC provided notice of a foreclosure sale. Plaintiffs sued HSBC and Wells Fargo Bank, N.A., the mortgage servicer, to enjoin the sale. The district court denied Plaintiffs’ request for a preliminary injunction and granted Defendants’ motion to dismiss under Fed. R. Civ. P. 12(b)(6). The First Circuit affirmed, holding (1) Plaintiff's claim that HSBC cannot foreclose on the property on grounds that MERS's assignment of the mortgage to HSBC was invalid was foreclosed by precedent; and (2) the district court also properly dismissed Plaintiffs' obsolete mortgage claim, which had no basis in the plain text of Massachusetts's obsolete mortgage statute or in precedent.
This opinion or order relates to an opinion or order originally issued on August 8, 2017.