Cases - Federal Court Dismisses Wrongful Foreclosure Lawsuit brought by Third-Party Purchaser

Federal Court Dismisses Wrongful Foreclosure Lawsuit brought by Third-Party Purchaser

Resolution Date
03/06/2013

Practice Areas
Commercial Litigation
Legal Malpractice

Description

John Bunyan and Shannon Sprinkle won dismissal of a wrongful foreclosure action against a law firm retained to initiate foreclosure and dispossessory proceedings. Plaintiff challenged foreclosure proceedings against three properties that he alleged had been transferred to him after the original borrowers had signed promissory notes and security deeds. The district court dismissed Plaintiff’s claims because he lacked standing to challenge foreclosure proceedings brought under security deeds that he was not a party to, he had not alleged that the loans in default had been satisfied, and his own personal bankruptcy did not operate as a stay of foreclosure proceedings based on the original borrowers’ default on their loans.

Attorneys Involved
John L. Bunyan
Shannon M. Sprinkle

CCS Office
Atlanta