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Mass. Has New Requirements For Foreclosing Mortgagees

Law360, New York (July 28, 2015, 10:18 AM EDT) -- The Supreme Judicial Court of Massachusetts in Pinti v. Emigrant Mortgage Co., No. SJC-11742, 2015 Mass. LEXIS 476 (July 17, 2015), held that a mortgagee must strictly comply with the notice of default terms of paragraph 22 of Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corp. (Freddie Mac) mortgages. As found by the court, Emigrant Mortgage Co. Inc.'s failure to notify the mortgagors of their right to initiate a pre-foreclosure lawsuit rendered void, rather than voidable, Emigrant's subsequent exercise of its power of sale and the conveyance of the property by foreclosure deed to a bona fide purchaser....

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