PHH Mortgage Corp. v. Patterson
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The Supreme Court affirmed the judgment of the intermediate court of appeals (ICA) ruling that the circuit court did not err in ordering an appointed commissioner to take possession and collect rents and during the period between summary judgment and confirmation of sale in this foreclosure case.
The Association of Apartment Owners of Elima Lani Condominiums (AOAO) foreclosed on the previous owners of a condominium based on delinquent assessments and then PHH Mortgage Corporation, the mortgage lender, foreclosed on AOAO. AOAO appealed, arguing that the circuit court erred when it ordered that AOAO's possessory interest and right to collect rent from the property was extinguished upon entry of the foreclosure decree and erred when it vested the commissioner with legal and equitable title to the foreclosed property prior to the confirmation of sale. The ICA affirmed. The Supreme Court affirmed, holding that because the commissioner did not collect any rents, the ICA correctly held that the circuit court did not err in ordering the Commissioner to take possession and collect rents, and there were no rents to allocate under Haw. Rev. Stat. 514B-146(n).
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