Skip to main content

Confused - who can foreclose on my property?

New Port Richey, FL |
Filed under: Foreclosure

My home was in foreclosure with Chase in 2009. Chase then assigned my mortgage to IBM, which became Seterus. In May 2012 a Master Order of Dismissal was entered.

In November 2012, I checked my public record file with the Clerk of Court and found that an Assignment of Mortgage was entered on October 1, 2012 to MERS, solely as nominee for Federal National Mortgage Association Its Successors and Assigns. I was never notified that this was taking place.

Yesterday, I rec'd a notice from Choice Legal Group in Ft. Lauderdale that Fannie Mae is the creditor to whom the debt is owed.

Today, I received another notice from CLG stating that my loan has been referred to them by Seterus for foreclosure.

Can Seterus foreclose on my property when it has been assigned to Fannie Mae?

Attorney Answers 3


It sounds as though you are confusing the owner of the note with the servicer--Fannie Mae (Federal National Mortgage Association) is likely the owner of your note, and Seterus is the current servicer. Noteholders regularly change servicers, which is why you have seen so many different entities involved. MERS is generally just a nominee, which is a whole other kind of entity. As far as who can foreclose on the property, under Florida law the owner or holder of the note and mortgage can foreclose, or their authorized representative can do so.

You are correct that this is all very confusing and is a kind of "shell game" that the banks play. Your best bet is to find a qualified foreclosure defense attorney in your area to help you make sense out of it all.

Mark as helpful

4 lawyers agree


The mortgage industry and its foreclosure firms play neverending games of "hide the ball". Your recital of facts is a classic example. Odds are that Chase was the servicer for Fannie Mae, and that IBM - Seterus is now the servicer for Fannie Mae. Fannie Mae is like a big spider hiding back in its web, sending other parties out to do its dirty work.

The bottom line is that you need an experienced financial services litigation attorney to take this on and to push back in the ways that make sense in your case, with your particular facts.

Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.

Mark as helpful

1 found this helpful

2 lawyers agree


Assuming that Seterus is the loan servicer for your loan and they have authorization from FNMA to bring the foreclosure suit, then yes Seterus can foreclose on your property. Seterus currently only services FNMA loans and this is a fairly common situation. However, based on the prior transfers you described, it is possible that you still have a "lack of standing" defense. It would be necessary to review the complaint when it is filed, the original note and mortgage, and FNMA's records regarding your loan. The endorsements on the note will be important and should be compared with FNMA's loan history. If FNMA does not have the original note and mortgage, it is more likely that there is a standing issue. This information can be obtained from the documents filed in your case and through discovery conducted during the suit.

Mark as helpful

Real estate topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics