Medford LLC v. U.S. Bank, N.A. and Nathan F. Smith

Summary

The United States District Court for the District of Oregon denied Medford LLC’s motion for a temporary restraining order seeking to prevent eviction and preserve its possession of foreclosed property. The court held that Medford lacked standing to challenge foreclosure proceedings because it was not a party to the promissory note or trust deed and asserted rights belonging to prior borrowers. The court further concluded that, even assuming standing, Oregon law likely barred a collateral attack on the completed nonjudicial foreclosure sale.

Holdings

1. Plaintiff lacks standing to challenge the foreclosure because it purchased the property after the borrowers defaulted, was not a party to the promissory note or Trust Deed, and its claims assert violations of third parties' rights.
2. Even assuming standing, Oregon law prohibits a party with notice of a non-judicial foreclosure sale from collaterally attacking the sale after it has been completed.
3. Plaintiff's Emergency Motion for Temporary Restraining Order is denied because Plaintiff fails to establish likelihood of success on the merits.

Questions Presented

1. Whether Plaintiff has standing to challenge a non-judicial foreclosure sale when it purchased the property after default and was not a party to the promissory note or Trust Deed.
2. Whether Plaintiff is entitled to a Temporary Restraining Order to prevent eviction pending adjudication of foreclosure and quiet title claims.

Disposition

denied