Bank-Fund Staff Federal Credit Union held a mortgage on debtors’ real estate.  The loan was in default and the credit union sought to foreclose and obtain possession of the property.

The credit union initiated foreclosure proceedings and sent a Notice of Foreclosure Sale to debtors.

The foreclosure notice, however, erroneously stated that the members did not have a right to cure the default and failed to include the cure amount.

The court held that the foreclosure notice was fatally defective and that the credit union could not proceed to foreclose without first providing proper notification to debtors of their right to reinstate the mortgage by payment of a specified amount to cure the default. Bank-Fund Staff Federal Credit Union v. Guillermo Vivado et al. (District of Columbia Court of Appeals).

Author: Charles R. Harroun, Attorney at Law