Bank of America, N.A. v. Thomas Jessup, LLC Series VII

The Supreme Court reversed the district court's judgment determining that a foreclosure sale extinguished a bank's deed of trust when an homeowner's association (HOA) agent told a deed of trust beneficiary's agent that it would reject a superpriority tender if made, holding that such a representation excludes the formal requirement of making a formal tender sufficient to preserve the first deed of trust under Bank of America, N.A. v. SFR Investments Pool 1, LLC, 427 P.3d 113 (2018).Here, the HOA told the deed of trust beneficiary that it would reject a superpriority tender if made. The district court ruled that the foreclosure sale extinguished Bank’s deed of trust and that the HOA's offer was insufficient to constitute a tender. The Supreme Court reversed, holding (1) an offer to make a payment at some point in the future cannot constitute a valid tender; (2) a formal tender is excused when the party entitled to payment represents that if a tender is made, it will be rejected; and (3) the deed of trust beneficiary’s agent was excused from making a formal tender in this case, and therefore, the foreclosure sale did not extinguish the first deed of trust. View "Bank of America, N.A. v. Thomas Jessup, LLC Series VII" on Justia Law