WVMF Funding, as Successor to OneWest Bank, FSB v. Palmero
In a HECM reverse-mortgage foreclosure, the Third District had held en banc that a surviving spouse who signed the mortgage in the 'Borrower' signature block was a co-borrower as a matter of law, defeating foreclosure. The Florida Supreme Court quashed, holding that under Graham v. Fitts and Hotel Management Co. v. Krickl the mortgage must be construed together with the note it secures, and the note controls in the event of conflict. Because the note (and the mortgage's own definition) identified only Mr. Palmero as 'Borrower,' the wife's signature—required to encumber homestead—did not make her a co-borrower.
Key facts
- WVMF Funding, as successor to OneWest Bank, sought to foreclose a HECM reverse mortgage against the Palmeros; Mr. Palmero was identified as the sole 'Borrower' in both the note and mortgage, but his surviving spouse also signed the mortgage in the 'Borrower' signature block.
- The Third District Court of Appeal held en banc that the wife's signature in the 'Borrower' block made her a co-borrower as a matter of law, defeating the foreclosure.
- +2 more key facts with a free trial
Why it matters
This decision resolves years of Third District law that had effectively barred foreclosure of HECM reverse mortgages against surviving non-borrowing spouses who signed the mortgage. Lenders can now rely on the note's… — full analysis with a trial
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