Fed. Nat'l Mortgage Ass'n v. Rego
Annotate this CaseThe Federal National Mortgage Association (Fannie Mae) filed a complaint for summary process in the Housing Court to establish its right to possession of the Rego house, which Fannie Mae purchased at a foreclosure sale. The Regos argued that the foreclosure sale conducted by GMAC, which held the mortgage, was void because GMAC's attorneys had not been authorized by a prior writing to undertake the actions set forth in G. L. c. 244, sect. 14. They also asserted an equitable defense and counterclaims. The judge granted Fannie Mae summary judgment "as to possession only," and scheduled a bench trial on the counterclaims, but later dismissed the counterclaims for lack of subject matter jurisdiction. The Massachusetts Supreme Judicial Court vacated. The foreclosure suffered no defect on the asserted ground that GMAC failed to provide such authorization to its attorneys, but the Housing Court has limited authorization to entertain counterclaims and an equitable defense to the foreclosure sale in the summary process action.
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