Cathay Bank v. Accetturo

Plaintiff filed mortgage foreclosure action against Defendants (including U.S. and U.S. Treasury Department) to obtain possession of property because Defendant failed to make payments on her note. A notice provision with an acceleration clause in a mortgage is a condition precedent and prescribes servicing requirements that a lender must comply with in order for lender to have a right to file an aciton to recover possession of a secured property. Bank failed to comply with condition precedent present in one paragraph in mortgage, and bank's failure to give homeowner the notice required by that paragraph divested lender of its right to file foreclosure action. Thus, court erred in granting bank's motion for summary judgment and entering order approving report of sale and distribution.(HYMAN and PIERCE, concurring.)