February 4, 2013
Florida Court of Appeal held that Loan Servicer Defendant was the Proper Holder of Promissory Note and Mortgage, and Granted Summary Judgment
In Riggs v. Aurora Loan Services, LLC, 36 So. 3d 932 (Fla. Dist. Ct. App. 2010), the District Court of Appeal of Florida, Fourth District, held that Aurora Loan Services, LLC, was the lawful holder of a promissory note and affirmed the Circuit Court’s decision granting Aurora’s motion for summary judgment.
Riggs, the borrower/homeowner, objected to Aurora’s foreclosure action on the grounds that Aurora’s promissory note had a blank indorsement and thus failed to conclusively establish that Aurora was the lawful owner and holder of the note. The Court disagreed.
Aurora possessed the original note which was indorsed in blank and signed as required. The Court noted that because the indorsement was a blank indorsement, the note was payable to bearer and could be negotiated by transfer of possession alone. The Court then held that Aurora was the holder of the note, and was entitled to enforce it, because the note was negotiated by its transfer of possession. The Court also found no authentication issue since Riggs never challenged the authenticity of the signature at issue in his pleadings, and because the promissory note was self-authenticating. Thus, because Aurora offered supporting affidavits and the original note with a blank indorsement, the Court held that Aurora was the proper holder of the note and mortgage.
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