JP Morgan Chase Bank v. U.S. Bank National Ass'n

JP Morgan challenges the trial court’s distribution of surplus proceeds in a foreclosure action and its failure to vacate or reconsider the distribution order.

We reverse, as the trial court should have vacated the order when it became aware of the unsatisfied second mortgage, the mortgagee’s lack of agreement with the disbursement, and the order’s adverse impact on the lienholder’s rights. Further, the trial court’s decision is not supported by the evidence.

Upon foreclosure of a first mortgage, the defendants included property owner Neera Persad; the initial second mortgagee, Aames Funding…