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Dismissed foreclosure involving merged lender reinstated

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A mortgage foreclosure dismissed by a Lake Superior judge was reinstated Thursday by a panel of the Indiana Court of Appeals.

The panel reversed and remanded Judge Calvin D. Hawkins’ dismissal of a lender’s claim of damages against a widow who 20 years ago took out a $60,000 note with her husband on a Crown Point home the couple bought in 1972.

Sharon L. Hatton’s husband died in 2008, and she stopped making payments on the note in 2009, according to the record. The lender brought suit, Beneficial Financial 1 Inc., Successor in Interest to Beneficial Mortgage Co. of Indiana v. Sharon Hatton, a/k/a Sharon J. Hatton, First Select, Inc., Calvary SPV, II, LLC, and Discover Bank, 45A03-1212-MF-531.

Hatton moved to dismiss the claim on two grounds: that an erroneous legal description invalidated the note, and that Beneficial Financial 1 failed to prove it had an interest in the property as the successor company to Beneficial Mortgage Co. of Indiana. Hawkins granted the motion, but the appeals panel said relief under T.R. 12(B)(6) was error.

 “Moreover, Beneficial’s proof of status as surviving entity in its merger with Beneficial Mortgage Company of Indiana was sufficient to establish its standing to pursue an action to foreclose the security interest set out in the mortgage. This cause is remanded with instructions to reinstate Beneficial’s complaint for damages.”

Beneficial also must have an opportunity to prove that a mutual mistake was the cause of the erroneous legal description of the property secured by the mortgage, the panel ruled.

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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