My mom signed the note and mortgage with ABC Bank, and then she passed
away leaving me the house, with a mortgage in arrears. I recently was
served on behalf of my mother at the house by a Bank called QRST BANK
as Trustee for the F-0419 SERIES. I don’t know who they are, but
I am concerned. Can Loan Lawyers help me keep my home even though this
QRST Bank is coming after my mom for an alleged default on her mortgage?
The answer is Yes! Loan Lawyers certainly can help.
Let’s first learn a little bit: Article 9 of Florida's Uniform
Commercial Code governing secured transactions is contained in Chapter
679, Florida Statutes. Generally, Chapter 679 “does not apply to
the creation of” a real property mortgage. § 679.1091, Fla.
Stat. Ann., UCC cmt. 7 (West 2008);
see also § 679.1091(3)(k), Fla. Stat. (2008). However, if, as occurred in
this case, the note in a mortgage transaction is sold or assigned, Chapter
679 applies to the security interest created in favor of the purchaser
or assignee of the note. As Comment 7 to section 679.1091 explains:
O borrows $10,000 from M and secures its repayment obligation, evidenced
by a promissory note, by granting to M a mortgage on O's land. [Article
9] does not apply to the creation of the real-property mortgage. However,
if M sells the promissory note to X or gives a security interest in the
note to secure M's own obligation to X, [Article 9] applies to the
security interest thereby created in favor of X. The security interest
in the promissory note is covered by [Article 9] even though the note
is secured by a real-property mortgage.
HSBC Bank USA, N.A. v. Perez, No. 4D13-3193, 2015 WL 2078683, at *2 (Fla. Dist. Ct. App. May 6, 2015).