5th Circ. Blocks 'Split Note' Foreclosure Theory In Texas

Law360, Dallas (June 26, 2013, 9:27 PM EDT) -- The Fifth Circuit on Wednesday said Texas law allows residential foreclosures even when a bank or other entity doesn’t own both the mortgage note and deed for the house, in an opinion it said is intended to clarify disagreement among federal district courts on the issue.

In a published opinion, the appellate panel affirmed a Texas home foreclosure for a Bank of America unit and the Federal National Mortgage Association and clarified controlling law on two theories commonly advanced by parties seeking to overturn a foreclosure...
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