James B. Nutter & Co. v. Estate of Murphy
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The language in the reverse mortgages at issue in this case incorporated the statutory power of sale as set forth in Mass. Gen. Laws ch. 183, 21 and allowed the Mortgagee to foreclose on the mortgaged property in accordance with the requirements in section 21.
Three Homeowners obtained loans from Mortgagee secured by reverse mortgages on their homes. Later, alleging default, Mortgagee sought to foreclose on the mortgages. Mortgagee brought separate actions against each borrower or the executors of their estate seeking a declaratory judgment allowing it to foreclose pursuant to the statutory power of sale. The trial judge granted Mortgagee’s motion for partial judgment on the pleadings, concluding that Mortgagee’s reverse mortgage incorporated the statutory power of sale by reference. The Court of Appeals affirmed, holding that the language of Mortgagee’s reverse mortgages incorporated the statutory power of sale as defined in section 21.
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