Tag: foreclosure hearing

N.C. Court of Appeals: In re Clouse- Requirement for De Novo Foreclosure Hearing


On October 21, 1998, the Clouses granted a Deed of Trust against their home originally to Homecomings Financial, later assigned to Deutsche Bank and serviced by GMAC. On June 22, 2012, Turnip Investments, following its suit against the Clouses, purchased the property at a judgment execution sale for $1,000. Subsequently, Deutsche Bank commenced foreclosure against the property and Turnip Investments appealed the foreclosure authorization by the Clerk first to the Superior Court, where Turnip Investments raised no objections to any evidence, and then a further appeal to the Court of Appeals.

There Turnip Investment argued that the Superior Court failed to conduct a proper de novo hearing and had insufficient evidence to show that Deutsche Bank was the holder of the Note.… Read More

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4th Circut: Sun Trust v. Nassida- Foreclosure Hearing Finding of Valid Debt and Default was Res Judicata as to later Challenges to Debt


Sun Trust sued to collect on deficiencies following a foreclosure in North Carolina.  The Debtors raised defenses challenging the validity of the debt and the default.  The Court of Appeals held that the determination of a valid debt and default at the foreclosure hearing was res judicata.    While the Debtors  could not have raised these equitable defenses in the hearing under N.C.G.S. §  45-21.16, they could have raised such  defenses in a proceeding to enjoin the foreclosure under N.C.G.S. § 45-21.34 (2006).  The failure by the Debtors to do so resulted in the rights of the parties to the foreclosure becoming “fixed” and therefore barred the Debtors from raising such an equitable challenge in a later proceeding in a different court.… Read More

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