Murphy v. Aurora Loan Services, LLC
- Citation:
- 8th Cir. Court of Appeals (Case No 12-1398 - Filed Nov 8, 2012)
- Tag(s):
-
- Ruling:
- REVERSED the District Court's dismissal of quiet-title cause of action, AFFIRMED the dismissal of all the homeowners claims with prejudice, and REMAND for proceedings consistent with decision.
- Procedural context:
- Homeowners initially filed suit in state court against Aurora, MERS and Aurora's counsel, Wilford and Geske, P.A ("W&G"). In that suit, homeowners allege that neither Aurora nor MERS is entitled to foreclose on their properties and W&G knowingly made false representation regarding Aurora's authority to foreclose.
Aurora and MERS removed the action to federal court based on the allegedly fraudulent joinder of W&G. The district court denied the homeowners' motion to remand and dismissed their claims with prejudice. From that decision, the homeowners appealed to the Court of Appeals for the 8th Circuit.
- Facts:
- Plaintiffs are all Minnesota homeowners who borrowed money, by promissory notes, for the purpose of purchasing a home. MERS was the nominal mortgagee who subsequently pooled, securitized, and sold those notes on the secondary market to Aurora Loan Servicing, LLC and Aurora Bank FSB ("AURORA"). After the homeowners defaulted on their payments, Aurora retained counsel to aid them in foreclosing on the properties. From those attempts, the homeowners sued Aurora and MERS alleging that they are not entitled to foreclose on the properties and Aurora's counsel made false representations regarding Aurora's authority to foreclose.
- Judge(s):
- Riley, Arnold and Gruender.
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