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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. Well, maybe it's because they are unelected, and, they have a tendency to strike down laws by elected officials from all over the country. When you have been taught that "Democracy" is something almost sacred, then, you will have a tendency to frown on such imperious conduct. Lawyers get acculturated in law school into thinking that this is the very essence of high minded government, but to people who are more heavily than King George ever did, they may not like it. Thanks for the information.

  2. I pd for a bankruptcy years ago with Mr Stiles and just this week received a garnishment from my pay! He never filed it even though he told me he would! Don't let this guy practice law ever again!!!

  3. Excellent initiative on the part of the AG. Thankfully someone takes action against predators taking advantage of people who have already been through the wringer. Well done!

  4. Conour will never turn these funds over to his defrauded clients. He tearfully told the court, and his daughters dutifully pledged in interviews, that his first priority is to repay every dime of the money he stole from his clients. Judge Young bought it, much to the chagrin of Conour’s victims. Why would Conour need the $2,262 anyway? Taxpayers are now supporting him, paying for his housing, utilities, food, healthcare, and clothing. If Conour puts the money anywhere but in the restitution fund, he’s proved, once again, what a con artist he continues to be and that he has never had any intention of repaying his clients. Judge Young will be proven wrong... again; Conour has no remorse and the Judge is one of the many conned.

  5. Pass Legislation to require guilty defendants to pay for the costs of lab work, etc as part of court costs...

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