Foster v. Deutsche Bank National Trust Co. | 5th Cir. Holds No Wrongful Foreclosure Without Completed Foreclosure Sale, Substitute Trustee Fraudulently Joined

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Foster v. Deutsche Bank National Trust Co. | 5th Cir. Holds No Wrongful Foreclosure Without Completed Foreclosure Sale, Substitute Trustee Fraudulently Joined

Foster v. Deutsche Bank National Trust Co. | 5th Cir. Holds No Wrongful Foreclosure Without Completed Foreclosure Sale, Substitute Trustee Fraudulently Joined

Lexology-

The U.S. Court of Appeals for the Fifth Circuit recently affirmed a trial court’s denial of a mortgagor’s motion for remand because the non-diverse substitute foreclosure trustee was improperly joined in order to defeat diversity jurisdiction.

The Fifth Circuit also affirmed the trial court’s summary judgment ruling in favor of the trustee and loan servicer because the foreclosure sale never took place, and therefore the mortgagor could not state a cause of action for wrongful foreclosure under Texas law.

A copy of the opinion in Foster v. Deutsche Bank National Trust Co. is available at: Link to Opinion.

The mortgagor purchased a home with her husband in 2004 in Grand Prairie, Texas. Her husband signed the promissory note, but the plaintiff mortgagor did not. She did, however, sign the deed of trust.

[LEXOLOGY]

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