News & Insights

Connecticut Supreme Court Addresses Standing in Foreclosure by Geoffrey Milne

Feb 16, 2023

Servicers and their counsel have a definitive ruling from the Connecticut Supreme Court that the mere possession of an original note, which is not endorsed to the foreclosing plaintiff, does not automatically confer standing in a mortgage foreclosure (Bank of NY Mellon v. Tope, 2022 Conn. Lexis 329).

In this case, the note was endorsed to JP Morgan Chase Bank, as Trustee. The suit was filed in the name of Bank of NY Mellon as Trustee in 2014. The trial court had entered a Judgment of Foreclosure by Sale, and the date was extended multiple times, in part due to equity in the property.

The last sale date set by the trial court was October 21, 2017. The borrower had previously filed a series of Motions to Dismiss, claiming a lack of standing, that were denied by the trial court. Undeterred, the borrower then filed a Motion to Open the Judgment shortly before the sale date, again claiming a lack of standing based on the status of the note. The trial court denied the Motion to Open, without conducting an evidentiary hearing. The borrower then filed an appeal of the denial of the Motion to Open.

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