Bank of America, N.A. v. Scott A. Greenleaf

Summary

The Maine Supreme Judicial Court vacated a foreclosure judgment in favor of Bank of America, holding that the Bank lacked standing because it failed to establish ownership of the mortgage. The court also concluded that, even if standing had been established, the Bank failed to prove the amount due because its payment-history exhibit was not adequately authenticated as a business record.

Holdings

1. A foreclosure plaintiff must establish a requisite legal interest in both the note and the mortgage. Possession of a note endorsed in blank established the Bank's status as holder of the note, but the Bank lacked standing because it failed to prove ownership of the mortgage.
2. A party in possession of a negotiable note endorsed in blank is a holder entitled to enforce the note, even though note enforcement does not by itself establish ownership of the mortgage.
3. A foreclosure plaintiff must establish the amount due, and a payment-history printout is inadmissible as a business record without adequate testimony from a custodian or qualified witness concerning the recordkeeping system and the witness's firsthand knowledge.
4. A notice of default must strictly comply with section 6111, including an itemization that states the precise amount required to cure the default during the cure period; directing the mortgagor to contact the servicer for an updated amount does not satisfy that requirement.
5. The trial court did not abuse its discretion in calculating the sanction imposed for the Bank's violations of Maine Rule of Civil Procedure 56(h).

Questions Presented

1. Whether Bank of America had standing to foreclose when it possessed the note endorsed in blank but failed to establish ownership of the mortgage.
2. Whether the Bank proved the statutory and evidentiary elements required for a foreclosure judgment.
3. Whether the trial court improperly admitted the payment-history printout as a business record.
4. Whether the notice of default and right to cure complied with 14 M.R.S. § 6111.
5. Whether the trial court imposed an inadequate or otherwise improper sanction for violations of Maine Rule of Civil Procedure 56(h).

Disposition

vacated