Joaquin Encarnacion Hernandez v. Prudential Mortgage Corporation

COFFIN, Chief Judge.

Appellants are homeowners who have defaulted on their mortgage payments. Appellee Prudential is a mortgage holder seeking to foreclose, and appellee Padin is the president of Prudential. The case has a federal dimension because appellants acquired their homes through a federal subsidy program. Appellants argue that the program sets up procedures that must be followed before foreclosure is permissible. The court below rejected this claim. The program was established by section 235 of the Housing and Urban Development Act of 1968. Codified at 12 U.S.C. § 1715z. The purpose…