Editor: David Reiss
Brooklyn Law School

December 2, 2012

Federal District Court in Idaho Rules Bank has Standing in Foreclosure Case

By Rafe Serouya

In Purdy v. Bank of America, No. 1:11-CV-00640-EJL-REB (D. Idaho Sept. 26, 2012), in granting Bank of America’s motions to dismiss, the Federal District Court in Idaho agreed with the magistrate judge that the securitization of a note does not affect the right to foreclose on a deed of trust. The Court was persuaded by another case that the Fair Debt Collection Practices Act (“FDCPA”) was not intended to include non-judicial foreclosure actions, as the non-judicial foreclosure process does not rise to the level of a “debt collection activity” under the FDCPA, and the plaintiff homeowner’s claim that the banks are debt collectors and in violation of the Act . Lastly, the court held the alleged defect in recording the power of attorney status of Bank of America is insufficient to invalidate the statutory non-judicial foreclosure process, with which the bank complied.

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