At page 475 Burden of proof regarding proper notice posting in foreclosure32 citing cases“mere inadequacy of consideration alone does not render a foreclosure sale void if the sale was legally and fairly made.”
- Eddie Gonzalez Villa v. Silvia R. Villa A/K/A Silvia Ramos, 664 S.W.3d 415 (Tex. App.—Eastland 2023).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex. 1965).
- 900 Cesar Chavez, LLC 905 Cesar Chavez, LLC 5th & Red River, LLC & 7400 South Cong., LLC v. ATX Lender 5, LLC, SL Red River, LP, SL South Cong., LP, & SL Chavez, LP, No. 07-21-00236-CV (Tex. App.—Amarillo Aug. 19, 2022).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex. 1965).
- Plainscapital Bank v. William Martin, 459 S.W.3d 550 (Tex. 2015).published Ass’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965)).
- Martin, William v. PlainsCapital Bank, No. 05-10-00235-CV (Tex. App. Mar. 27, 2015).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex. 1965)). 2 Section 51.003 expressly refers and relates to “a foreclosure sale under Section 51.002.” TEX.
- Mehrdad Moayedi v. Interstate 35/chisam Road, L.P. & Malachi Dev. Corp., 438 S.W.3d 1 (Tex. 2014).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965). 10 .
- Powell v. Stacy, 117 S.W.3d 70 (Tex. App.—Fort Worth 2003).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965); Sanders v. Shelton, 970 S.W.2d 721, 726 (Tex.App.-Austin 1998, pet. denied).
- William Powell v. Ira Stacy & Louise Stacy D/B/A Sand Dollar Props., No. 02-03-00001-CV (Tex. App.—Fort Worth July 24, 2003).publishedAss'n v. Lucky Homes, Inc. , 390 S.W.2d 473, 475 (Tex. 1965); Sanders v. Shelton , 970 S.W.2d 721, 726 (Tex. App.--Austin 1998, pet. denied).
- Benitez, Emigdio v. Sylvia Ann Perales & Bob J. Cavender, No. 01-00-00211-CV, 2002 WL 1981189 (Tex. App.—Houston [1st Dist.] Aug. 29, 2002).unpublished Ass'n v. Lucky Homes, Inc ., 390 S.W.2d 473, 475 (Tex. 1965); Maupin v. Chaney , 163 S.W.2d 380 (1942); Onwuteaka , 846 S.W.2d at 892 ; Pentad Joint Venture v. First Nat'l Bank , 797 S.W.2d 92, 96 (Tex. App.--Austin 1990, writ denied); Don…
- Peterson v. Black, 980 S.W.2d 818 (Tex. App.—San Antonio 1998).publishedTarrant Savings Ass’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965).
- Michael J. O'Brian Barbara A. O'Brian Robert J. O'Brian & Martha J. O'Brian v. First State Bank & H. Frank Harren, III, No. 03-95-00644-CV, 1996 Tex. App. LEXIS 4099 (Tex. App.—Austin Sept. 11, 1996).unpublishedAss'n v. Lucky Homes, Inc. , 390 S.W.2d 473, 475 (Tex. 1965); First State Bank v. Keilman , 851 S.W.2d 914, 921 (Tex. App.Austin 1993, writ denied).
Show 21 more citing cases
- Provident Nat'l Assurance Co. v. Stephens, 910 S.W.2d 926 (Tex. 1995).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965); Maupin v. Chaney, 139 Tex. 426 , 163 S.W.2d 380, 384 (1942).
- In Re John R. Lindsay, Debtor. John R. Lindsay Lindsay Enter., Inc., a California Corp. Ima 79-6, a California Ltd. P'ship &, Ima 81-3, a California Ltd. P'ship v. Beneficial Reinsurance Co., a Corp. Beneficial Stand. Life Ins. Co., a Corp. & Does 1-100, Inclusive, in Re John R. Lindsay, Debtor. (Three Cases) John R. Lindsay, a California Corp. Paul Bushard v. Beneficial Reinsurance Co., a Corp. Beneficial Stand. Life Ins. Co., a Corp. & Does 1-100, Inclusive, John R. Lindsay, a California Corp. Ima, a California Ltd. P'ship v. Beneficial Reinsurance Co., a Corp. Beneficial Stand. Life Ins. Co., a Corp. & Does 1-100, Inclusive, John R. Lindsay, a California Corp. Ima, a California Ltd. P'ship v. Beneficial Reinsurance Co., a Corp. Beneficial Stand. Life Ins. Co., a Corp. & Does 1-100, Inclusive, 59 F.3d 942 (9th Cir. 1995).publishedAss'n. v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965).
- Lindsay v. Beneficial Reinsurance Co., 59 F.3d 942 (9th Cir. 1995).publishedAss’n. v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965).
- Long v. NCNB-Texas Nat'l Bank, 882 S.W.2d 861 (Tex. App.—Corpus Christi 1994).publishedInstead, the court limited its examination of the record to the singular assessment of whether the secured party “committed some act of wrongdoing, misconduct, or unfairness.” Westridge Court, 815 S.W.2d at 331 (citing Tarrant Sav. *869 v.…
- Fed. Deposit Ins. v. Royal Park No. 14, Ltd., 2 F.3d 637 (5th Cir. 1993).publishedHouston, 1st Dist.1982, no writ), Tarrant Savings Assoc. v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965); and the entitlement to offsets also creates a fact issue which precludes summary judgment.
- Grant v. United States Dep't of Vets.' Affairs, 827 F. Supp. 418 (S.D. Tex. 1993).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965).
- First State Bank v. Keilman, 851 S.W.2d 914 (Tex. App.—Austin 1993).published Ass’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex. 1965).
- First State Bank v. Tom Keilman & Myrna Keilman, No. 03-91-00418-CV (Tex. App.—Austin Mar. 31, 1993).published Ass'n v. Lucky Homes, Inc. , 390 S.W.2d 473, 475 (Tex. 1965).
- Gainesville Oil & Gas Co. v. Farm Credit Bank of Texas, 847 S.W.2d 655 (Tex. App.—Texarkana 1993).published Appellants cite American Savings & Loan Ass'n of Houston v. Musick, 531 S.W.2d 581, 587 (Tex. 1975); Tarrant Savings Ass'n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex. 1965); Resolution Trust Corp. v. Westridge Court, 815 S.W.2d 327 (Te…
- Thompson v. Chrysler First Bus. Credit Corp., 840 S.W.2d 25 (Tex. App.—Dallas 1992).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex. 1965).
- Owen G. Weaver & Johnnie N. Weaver v. Sw. Nat'l Bank, Fed. Deposit Ins. Corp., as Receiver of Sw. Nat'l Bank, Acting in Its Corp. Capacity, & Texas Bank-Sw., No. 03-88-00242-CV (Tex. App.—Austin Jan. 8, 1992).unpublished Further, in Tarrant Savings Association v. Lucky Homes, Inc. , 390 S.W.2d 473, 475 (Tex. 1965), the Texas Supreme Court rejected the contention that a prerequisite to the recovery of a deficiency judgment is the establishment of the defici…
- Beach v. Resolution Trust Corp., 821 S.W.2d 241 (Tex. App.—Houston [1st Dist.] 1991).published Ass'n v. Lucky Homes, Inc., 390 S.W.2d 473, 475-76 (Tex. 1965); Maupin v. Chaney, 139 Tex. 426, 430-33 , 163 S.W.2d 380, 382-84 (1942).
- Resolution Trust Corp. v. Westridge Court Jt. Venture, 815 S.W.2d 327 (Tex. App.—Houston [1st Dist.] 1991).publishedAss’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965).
- Pentad Jt. Venture v. First Nat'l Bank of La Grange, 797 S.W.2d 92 (Tex. App.—Austin 1990).published Ass’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965); Maupin v. Chaney, 139 Tex. 426 , 163 S.W.2d 380 (1942).
- First Nationwide Bank, a Fed. Sav. Bank v. Summer House Jt. Venture, 902 F.2d 1197 (1st Cir. 1990).publishedAss’n v. Lucky Homes Inc., 390 S.W.2d 473, 475-76 (Tex.1965).
- Savers Fed. Sav. & Loan Ass'n v. Horst R. Reetz & Kathleen K. Reetz, 888 F.2d 1497 (5th Cir. 1989).publishedTarrant Savings Ass’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965); American Savings & Loan Ass’n v. Musick, 531 S.W.2d 581, 587 (Tex.1975); Maupin v. Chaney, 139 Tex. 426 , 163 S.W.2d 380, 382-84 (1942).
- Charter Nat'l Bank-Houston v. Stevens, 781 S.W.2d 368 (Tex. App. 1989).published One of them, Tarrant Savings Association v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965), gives support for the first part of the test which is the proposition that mere inadequacy of consideration is an insufficient ground for settin…
- Edmundson Inv. Co. v. Florida Treco, Inc., 633 S.W.2d 599 (Tex. App. 1982).publishedTarrant Savings Ass’n. v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965).
- Loomis Land & Cattle Co. v. Diversified Mortg. Investors, 533 S.W.2d 420 (Tex. Civ. App.—Tyler 1976).publishedTarrant Savings Association v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965).
- Skeen v. Glenn Just. Mtg. Co., Inc., 526 S.W.2d 252 (Tex. Civ. App.—Dallas 1975).published Tarrant Savings Ass’n v. Lucky Homes, Inc., 390 S.W.2d 473, 475 (Tex.1965).
- Biddle v. Nat'l Old Line Ins. Co., 513 S.W.2d 135 (Tex. Civ. App.—Dallas 1974).publishedSee also Tarrant Savings Association v. Lucky Homes, Inc., 390 S.W. 2d 473, 475 (Tex. 1965).
At page 474 Producing documents after bank moves for judgment6 citing cases
- Folkes v. Del Rio Bank & Trust Co., 747 S.W.2d 443 (Tex. App.—San Antonio 1988).publishedTarrant Savings Assodar tion v. Lucky Homes, Inc., 390 S.W.2d 473, 474 (Tex.1965); STRA, Inc. v. Seafirst Commercial Corporation, 727 S.W.2d 591, 594 (Tex.App.—Houston [1st Dist.] 1987, no writ); Pruske v. National Bank of Commerce of San…
- Morgan v. Amarillo Nat'l Bank, 699 S.W.2d 930 (Tex. App.—Amarillo 1985).publishedThis contention that the secured party failed to dispose of the collateral in a commercially reasonable manner is treated as an affirmative defense, Ward v. First State Bank, 605 S.W.2d 404 , 407 n. 5 (Tex.Civ.App.—Amarillo 1980, writ ref’…
- In re Est. of Stalcup, 627 S.W.2d 364 (Tenn. Ct. App. 1981).publishedTarrant Savings Association v. Lucky Homes, Inc., 390 S.W.2d 473, 474 (Tex.1965).
- Hagar v. Texas Distributors, Inc., 560 S.W.2d 773 (Tex. Civ. App.—Tyler 1977).publishedAnd in Tarrant Savings Association v. Lucky Homes, Inc., 390 S.W.2d 473, 474 (Tex.1965), the court said: “In the trial of this cause petitioner maintained its burden to establish its case by introducing its note from respondents in the amo…
- Texas Refrigeration Supply, Inc. v. Fed. Deposit Ins. Corp., 953 F.2d 975 (1st Cir. 1992).publishedSee Tarrant Savings Association v. Lucky Homes, Inc., 390 S.W.2d 473, 474, 475 (Tex.1965); Sumitomo Bank of California v. Product Promotions, Inc., 717 F.2d 215, 219 (5 Cir.1983).
- Texas Refrigeration Supply, Inc. v. Fed. Deposit Ins. ex rel. First RepublicBank Houston, N.A., 953 F.2d 975 (5th Cir. 1992).publishedSee Tarrant Savings Association v. Lucky Homes, Inc., 390 S.W.2d 473, 474, 475 (Tex.1965); Sumitomo Bank of California v. Product Promotions, Inc., 717 F.2d 215, 219 (5 Cir.1983).
At page 476 Mortgagee's right to bid at its own foreclosure sale7 citing casesreviewing evidence of unfair or wrongful conduct in sale by substitute trustee to mortgagee
- Tow v. Amegy Bank N.A., 498 B.R. 757 (S.D. Tex. 2013).publishedAss’n v. Lucky Homes, Inc. 390 S.W.2d 473, 476 (Tex.1965).
- Myrad Props., Inc. v. LaSalle Bank Nat'l Ass'n, 300 S.W.3d 746 (Tex. 2009).published(reviewing evidence of unfair or wrongful conduct in sale by substitute trustee to mortgagee)
- Sanders v. Shelton, 970 S.W.2d 721 (Tex. App.—Austin 1998).published Ass’n v. Lucky Homes, Inc., 390 S.W.2d 473, 476 (Tex.1965) and Biddle v. National Old Line Ins.
- Clarence Glen Love, Jr., as Indep. of the Est. of Clarence Glen Love v. Mills Cnty. State Bank, No. 03-97-00020-CV (Tex. App.—Austin Oct. 23, 1997).publishedAss'n v. Lucky Homes, Inc. , 390 S.W.2d 473, 476 (Tex. 1965) and Biddle v. National Old Line Ins.
- Valley Int'l Props., Inc. v. Ray, 586 S.W.2d 898 (Tex. Civ. App.—Corpus Christi 1979).publishedTarrant Savings Association v. Lucky Homes, Inc., 390 S.W.2d 473, 476 (Tex.Sup.1965); Fuqua v. Burrell, 474 S.W.2d 333 (Tex.Civ.App.—Waco 1971, writ ref’d n. r. e.).
Other citing cases
- United States v. Shepherd, 834 F. Supp. 175 (N.D. Tex. 1993).published
- Jefferson Stand. Life Ins. Co. v. Raymond P. Elledge, Jr., 463 F.2d 639 (5th Cir. 1972).published
- Koehler v. Pioneer Am. Ins. Co., 425 S.W.2d 889 (Tex. Civ. App.—Fort Worth 1968).published
- Smith v. Comm'r, 65 F.3d 37 (5th Cir. 1995).published
- Scott v. Dorothy B. Schneider Est. Trust, 783 S.W.2d 26 (Tex. App.—Austin 1990).published
- Rogers v. Fielder, 392 S.W.2d 797 (Tex. Civ. App.—Fort Worth 1965).published
v.
LUCKY HOMES, INC., Et Al., Respondents
This is a suit by Tarrant Savings Association, petitioner, plaintiff in the trial court, seeking a deficiency judgment after a foreclosure under a deed of trust previously executed by Lucky Homes, Inc., et al., respondents, in favor of petitioner. Following the conclusion of the evidence the trial court withdrew the case from the jury except as to one issue on the market value of the property foreclosed on at the time of the foreclosure sale. The court entered judgment for petitioner for the deficiency in the sum of $1258.81. The Court of Civil Appeals reversed the judgment of the trial court and remanded the case for a new trial. 379 S.W.2d 386.
In the trial of this cause petitioner maintained its burden to establish its case by introducing its note from respondents in the amount of $2,500. Day v. Cooper, 175 S.W. 485, Tex.Civ.App., no writ hist.; Citizens’ Garage Co. v. Wilson, 252 S.W. 186, Tex.Civ.App., no writ hist. See Lewin v. Houston, 8 Tex. 94, and Page v. Carson, 16 S.W. 1036 (Tex.Comm.App.). A credit of $1,200 was allowed as a result of the sale of certain property which had been mortgaged to secure petitioner in its note. Once petitioner’s case had been made out the burden shifted to the respondents, defendants in the trial court, to show some reason for denying recovery to petitioner. Citizens’ Garage Co. v. Wilson, supra; Brenard Mfg. Co. v. Barnett, 210 S.W. 990, Tex.Civ.App., no writ hist. See Newton v. Newton, 77 Tex. 508, 14 S.W. 157, and Reed v. Buck (Tex.Sup.Ct.), 370 S.W.2d 867. The question to be decided here concerns whether respondents have sustained this burden so as to raise a fact issue relating to some defense to petitioner’s right of recovery on its suit for deficiency. We hold that respondents have failed in this respect.
Respondents attempt to defeat petitioner’s case by showing that an improper credit has been allowed against their note. It is respondents’ theory that the foreclosure sale whereby the mortgaged property was sold for $1,200 was invalid because proper legal notices were not posted as required by statute. The only proof put forward by respondents to maintain their burden on this defensive matter related to the fact that the substitute trustee had not posted the notices himself nor did he know whether in fact they had been posted. Petitioner had introduced in evidence the substitute trustee’s deed of conveyance with its recitations that E. B. Conley, the substitute trustee, had posted proper notices as provided for in the deed of trust. Respondents urge that by proving that this recitation was erroneous the presumption that Conley properly posted the notices had been destroyed. They are correct in this contention, but they have simply not gone far enough. The destruction of the presumption does not raise a fact issue as to whether O. W. White, the[*475] original trustee, properly posted the notices. It was their burden to prove that notices were not posted, and all that they have done is prove that the substitute trustee did not post them, not that they were not posted. From the record it is apparent that the substitute trustee could not have posted proper notices since he was appointed only four days prior to the foreclosure sale.
At the time the notices should have been posted White was the only one authorized by the deed of trust to post them. Respondents make no attempt to show that White did not in fact post the notices. When an original trustee properly posts the notices required by law, there would be no necessity for re-posting, and the substitute trustee could have made a valid sale. Gamble v. Martin et al., 60 Tex.Civ.App. 517, 129 S.W. 386, no writ hist.
Under respondents’ theory that a fact issue had been raised with respect to whether or not proper notices had been posted, the only question under this record which could have been submitted to the jury was whether or not White had failed to properly post notices. There is no evidence presented which would support an affirmative finding to such an issue. It is therefore our opinion that respondents have merely shown that the substitute trustee, Conley, has not posted the proper notices, not that said notices were not in fact posted. Respondents have thus failed to maintain their burden of proof in this case.
The basic error committed by the Court of Civil Appeals lies in the premise upon which it constructed its opinion. That court accepted as sound the rule that “[a] prerequisite to the recovery of a deficiency judgment is the establishment of the deficiency by a valid foreclosure sale”, citing Casa Monte Co. v. Ward, Tex.Civ.App., 342 S.W.2d 812, no writ hist., and Sullivan v. Hardin, Tex.Civ.App., 102 S.W.2d 1110, no writ hist. This premise from which the Court of Civil Appeals reasoned is clearly erroneous. Under Maupin v. Cheney, 139 Tex. 426, 163 S.W.2d 380, if the sale is valid the mortgagee is entitled to judgment for the amount of the note, interest and attorney’s fees, less the amount received at the trustee sale and other legitimate credits. If the sale is invalid and title to the property has passed to a third person or the property has been appropriated to the use and benefit of the mortgagee, the mortgagor is entitled to have the reasonable market value of the property credited on the note (of course if, as in Maupin, the mortgaged property had an outstanding prior vendor’s lien or other prior deed of trust held by some third party, then the credit allowed would be the reasonable market value of the mortgagor’s equity in said property). The case of John Hancock Mutual Life Ins. Co. v. Howard, Tex.Civ.App., 85 S.W.2d 986, writ refused, provides the additional rule that if the sale was invalid and the property has not passed into the hands of a third person or been appropriated to the use and benefit of the mortgagee, the mortgagee may by alternative pleading have a judgment of foreclosure of his lien and for any deficiency which crediting of the proceeds of the sale may leave.
Respondents had an additional point before the Court of Civil Appeals by which they urge that this sale should be set aside on proof of inadequacy of price coupled with some wrongdoing, misconduct or unfairness on the part of the person exercising the power of sale under the deed of trust. Respondents contend that there was an inadequate price paid at the foreclosure sale in this case and point to the fact that while the sale was for only $1,200, the jury found the value of the property to be $4,000. Respondents further urge that there is sufficient evidence to go to the jury on the question of unfairness and improper conduct on the part of Conley.
Mere inadequacy of consideration alone does not render a foreclosure sale void if the sale was legally and fairly made. Burnette v. Realty Trust Co., 74 S.W.2d 536, Tex.Civ.App., writ ref. It therefore becomes our responsibility to determine[*476] whether from the record a fact issue was raised with respect to the propriety of this sale.
The record shows that Conley recommended to another employee of Tar-rant what said employee should bid for Tar-rant at the foreclosure sale. Respondents contend that such action on the part of Conley constitutes improper conduct. We do not agree. The rule is well settled in this state that a mortgagee with power to sell may purchase at his own sale made at public auction. Southern Trust & Mortgage Co. v. Daniel, 143 Tex. 321, 184 S.W.2d 465; Thornton v. Goodman, 216 S.W. 147 (Tex.Comm.App.). Since this is the law in Texas, it must follow that the mere fact that Conley, an officer of Tarrant, the mortgagee, requested another employee of Tar-rant to come to the sale and to bid $1,200 on Tarrant’s behalf does not constitute an impropriety on Conley’s part. Finding no evidence of unfair or wrongful conduct on Conley’s part that could combine with the alleged inadequate price so as to void the foreclosure sale, we overrule this point.
We reverse the Court of Civil Appeals and affirm the judgment of the trial court.