BANK OF NEW YORK MELLON F/K/A THE BANK OF NEW YORK, AS TRUSTEE FOR THE HOLDERS OF THE CERTIFICATES, FIRST HORIZON MORTGAGE PASS-THROUGH CERTIFICATES SERIES FHASI 2004-7, BY FIRST TENNESSEE BANK NATIONAL ASSOCIATION, MASTER SERVICER, IN IT'S CAPACITY AS AGENT FOR THE TRUSTEE UNDER THE POOLING AND SERVICING AGREEMENT,
STEVEN E. BACH AND BARBARA A. BACH, Appellants
from the Judgment Entered June 28, 2016 In the Court of
Common Pleas of Delaware County Civil Division at No(s):
BEFORE: DUBOW, RANSOM AND PLATT, [*] JJ.
Steven E. Bach and Barbara A. Bach, appeal pro se
from the June 28, 2016 Judgment entered in the Delaware
County Court of Common Pleas granting an in rem
Judgment in mortgage foreclosure. After careful review, we
summarize the relevant portion of the factual and procedural
history as follows. On September 28, 2004, Appellants
purchased a home located at 10 Roberts Road, Newtown Square,
Pennsylvania. To finance the purchase, Appellants obtained a
loan from Financial Mortgage Corp. in the amount of $479,
200.00. Appellants executed a note, secured by a mortgage on
the property at 10 Roberts Road.
December 1, 2008, Appellants defaulted on their obligations
under the mortgage and the note by failing to make their
required monthly payment. Appellants have not made a single
payment in the more than eight years since they defaulted on
their obligation. Nevertheless, they remained living in the
residence at 10 Roberts Road.
2, 2014, Appellee filed a Complaint in foreclosure against
Appellants. In the Complaint, Appellee listed two prior
assignments of the mortgage: (i) from the original Mortgagee,
Financial Mortgage Corp., to First Horizon Home Loan Corp.
("First Horizon"); and (ii) from First Horizon to
filed Preliminary Objections, which the trial court
overruled. Appellants subsequently filed an Answer to the
Complaint, denying "the validity of the assignments, the
authority of the parties that executed the assignments and
the standing of the parties to the assignments to execute
same." Answer, filed 10/3/14, at 1 (unpaginated).
trial court held a non-jury trial on February 1, 2016. The
parties entered 15 joint stipulations into the record.
Exhibit J-1. Appellee introduced, inter alia, the
original note, signed by Appellants and properly endorsed in
blank. See Exhibit P-10; Trial Court Opinion, filed
7/25/16, at 10 ("[t]he original note in this case is
endorsed in blank and in [Appellee's] possession at
trial, Appellants did not challenge the validity of the
mortgage or their default in payment. Instead, Appellants
attempted to challenge the assignment of the mortgage to
Appellee and Appellee's standing to bring the foreclosure
action. In addition, Appellants alleged, for the first time,
that there existed an additional "assignment, "
conducted prior to the assignment from First Horizon to
Appellee, and that this assignment rendered the assignment to
court entered a verdict in favor of Appellee. Appellants filed
a timely Motion for Post-Trial Relief arguing, for the first
time, that Appellee failed to include all prior assignments
in the Complaint, and that this omission constituted a
failure to comply with Pa.R.C.P. No. 1147. In an Order filed
May 4, 2016, the trial court denied the Motion. On June 28,
2016, the trial court entered an in rem Judgment in
favor of Appellee.
timely appealed. Both Appellants and the trial court complied
with Pa.R.A.P. 1925.
raise two issues, each broken down into three sub arguments.
See Appellants' Brief at 7-8. For ease of
disposition, we summarize Appellants' arguments as
follows. Appellants aver that, prior to the assignment from
First Horizon to Appellee, an "assignment" had been
made from First Horizon to First Horizon Asset Securities,
Inc ("Prior Transaction"). All parties conceded
that Appellee did not list this Prior Transaction in the
Complaint. Appellants argue that this Prior Transaction
rendered the assignment to Appellee invalid, and divested
Appellee of standing to bring a complaint in foreclosure.
Id. at 19-26. Appellants also aver ...