Oct 14, 2022

Anthony Legal files Amicus Brief on behalf of banking industry organizations in Wrongful Foreclosure Case

By Anthony Legal,

In October, Anthony Legal filed an Amicus Brief on behalf of the Tennessee Bankers Association and the Tennessee Mortgage Bankers Association, asking the Tennessee Supreme Court to review a case involving conflicting Tennessee caselaw on wrongful foreclosures.

In the opinion being challenged, Terry Case v. Wilmington Tr., N.A. as Tr. for Tr. MFRA 2014-2, No. E202100378COAR3CV, 2022 WL 2313548 (Tenn. Ct. App. June 28, 2022), the Tennessee Court of Appeals rescinded a foreclosure sale, where the foreclosing lender failed to provide a written notice of continuance of sale to a borrower, even though the borrower failed to show any harm.

The plaintiff in the case has filed an Application for Permission to Appeal to the Supreme Court, seeking clarification on the splintered issues of law surrounding wrongful foreclosure claims. The Application opens with a direct message: “Tennessee wrongful foreclosure law is in a state of disarray.”

This is a big deal, and the Tennessee Bankers Association and Tennessee Mortgage Bankers Association have had David Anthony file a brief on these issues to make sure the voice of the banking industry is heard. If this caselaw stands, title to any foreclosed real properties could remain under a cloud until any conceivable wrongful foreclosure claims expire (6 years from the sale date).

If the decision stands, Tennessee would be only one of a few states allowing recission of foreclosure sales.