National City Mortgage Co. v. Stephen

OPINION OF THE COURT

AMBRO, Circuit Judge.

We have the once-unusual case of a mortgage foreclosure brought in federal court based on diversity jurisdiction. The District Court granted a default judgment in favor of Plaintiff-Appellant National City Mortgage (“NCM”), and ordered that the property securing NCM’s loan to the defendants, homeowners Brian and Elaine Stephen, be sold at a foreclosure sale. Following that sale, the Court granted NCM’s motion to set aside the sale after NCM had failed to notify The Chase Manhattan Bank as Indenture Trustee (“Chase”), a junior lien holder, of the…