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Tony L. Pagador v. Trustmark National Bank

Citations: 225 So. 3d 571; 2017 WL 3720737; 2017 Miss. App. LEXIS 518Docket: 2016-CA-00879-COA

Court: Court of Appeals of Mississippi; August 29, 2017; Mississippi; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In the case of Pagador v. Trustmark National Bank, the appellant challenged the summary judgment granted by the Harrison County Circuit Court in favor of the bank, which allowed foreclosure on his home. Pagador, a veteran, had secured his property loan with a deed of trust, later assigned to Trustmark. After discovering toxic drywall, he sought and received two forbearance periods from Trustmark but failed to make mortgage payments since June 2010. Trustmark foreclosed in 2012 after Pagador did not cure his default or contest the foreclosure. The court applied a de novo review standard to the summary judgment, affirming the foreclosure's validity as Pagador did not present any evidence of a material fact dispute or breach of contract by Trustmark. The court ruled that Trustmark was not bound by VA regulations in foreclosure proceedings and had adhered to the deed of trust. Although Pagador waived his right to contest the foreclosure sale by not objecting, he retained the right to seek damages for wrongful foreclosure, as Mississippi precedent allows claims for damages despite not challenging the sale. Ultimately, the judgment was affirmed, with concurring opinions noting the distinction between waiving the right to set aside a foreclosure and the right to claim damages.

Legal Issues Addressed

Foreclosure under Deed of Trust

Application: The court upheld the foreclosure of Pagador's home due to his failure to make mortgage payments and lack of objection to the foreclosure, concluding that the bank acted within its rights under the deed of trust.

Reasoning: Trustmark acted within its rights under the deed of trust and VA rider.

Incorporation of VA Regulations in Foreclosure

Application: The court found that Mississippi law does not require the incorporation of VA regulations into mortgages, negating Pagador's claim of breach by Trustmark.

Reasoning: Trustmark was not obligated to comply with VA regulations regarding foreclosure extensions, as Mississippi law does not recognize the incorporation of these regulations into mortgages.

Mortgagor's Right to Seek Damages Post-Foreclosure

Application: Pagador's claim for damages due to alleged wrongful foreclosure was not barred by his failure to contest the foreclosure sale, as per Mississippi Supreme Court precedent.

Reasoning: A plaintiff does not forfeit the right to pursue damages for wrongful foreclosure simply by failing to object to the sale.

Summary Judgment Standard

Application: The court applied a de novo standard of review for summary judgment, affirming the lower court's decision as Pagador failed to provide evidence of a genuine issue of material fact.

Reasoning: Summary judgment is appropriate when evidence, including pleadings and affidavits, demonstrates no genuine issue of material fact, and the moving party is entitled to judgment as a matter of law.

Waiver of Right to Challenge Foreclosure

Application: Pagador's failure to object to the foreclosure sale waived his right to challenge the sale itself, although he retained the right to seek damages.

Reasoning: Pagador waived his right to challenge the foreclosure. Trustmark acted within its rights under the deed of trust and VA rider.