Anthony M. Weeresinghe and Cindy T. Weeresinghe v. Select Portfolio Servicing; Wilmington Savings Fund Society, FSB, Not in Its Individual Capacity but Solely as Trustee of Starwood Mortgage Residential Trust 2021-3

Summary

The United States District Court for the District of Massachusetts grants defendants’ motion for summary judgment in a foreclosure-related dispute. The court holds that the mortgage servicer’s default and acceleration notice complied with the mortgage’s notice requirements and that its disclosure of a right to reinstate before foreclosure was not misleading under Massachusetts law. The court directs the Clerk to enter judgment for defendants and close the case.

Holdings

1. The hybrid notice complied strictly with paragraph 22 of the mortgage because it unequivocally gave the borrowers a cure period of not less than 30 days from the date of the notice.
2. The reinstatement disclosure was not defective merely because it allowed reinstatement at any time before foreclosure rather than limiting reinstatement to five days before sale.

Questions Presented

1. Whether the May 28, 2024 hybrid notice failed to comply with paragraph 22 of the mortgage because it stated that the borrowers had 90 days to cure but provided a cure date 93 days after the notice.
2. Whether the hybrid notice was misleading or deceptive because it stated that the borrowers could reinstate at any time before foreclosure despite the mortgage's five-day reinstatement limitation and statutory limits applicable after a second default.

Disposition

other