Deutsche Bank Nat’l Trust Co. v. HoldenAnnotate this Case
Bank filed this foreclosure action against Debtors. Debtors counterclaimed, alleging that Bank did not own the promissory note or the mortgage at the time it commenced the foreclosure action. The trial court granted summary judgment for Bank, finding that Bank was the holder of the note and the assignee of the mortgage prior to the commencement of the action. The court of appeals reversed, concluding (1) only the current holder of both the note and the mortgage has standing to file a foreclosure action, and (2) genuine issues of material fact existed regarding whether Bank owned the note at the time it commenced the foreclosure action. The Supreme Court reversed, holding (1) when debt on a promissory note secured by a mortgage has been discharged by a bankruptcy court, the holder of the mortgage has standing to foreclose on the property and to collect the deficiency on the note from the foreclosure sale of the property; and (2) no genuine issue of material fact existed regarding any of the elements of Bank’s foreclosure action.