Sarah J. Harris and Bradley C. Harris v. U.S. Bank National Association, etc.

In granting final judgment on U.S. Bank National’s foreclosure complaint against Sarah and Bradley Harris (whom we’ll call “the Borrowers”), the trial court held that a HUD regulation was a condition precedent to foreclosure, but that the Borrowers failed to raise the issue and timely challenge the Bank’s noncompliance with the regulation. We affirm.

I

The Bank sought to foreclose a mortgage secured by a promissory note issued to the Borrowers. As an FHA loan, the note contained the following provision:

If Borrower defaults by failing to pay in full any monthly payment, then Lender may, except…