FORECLOSURE DESPITE BORROWERS’ NOTICE OF REMOVAL TO FEDERAL COURT | KEY POINTS

1. A circuit court judge in Osceola County, Florida, granted US Bank’s motion to proceed with its foreclosure case in the state trial court despite the borrowers’ notice of removal to federal court. S. Bank, National Association as Legal Title Trustee for Truman 2016 SC6 Title Trust v. Valeria Taveras, etc., Ninth Circuit, Case No. 2016 CA 000916 (September 1, 2023).

2. US Bank filed a mortgage foreclosure action against Taveras in 2016 and Taveras sought to remove the matter to federal court twice. The first attempt was unsuccessful as the federal court found the request to be untimely and meritless. After the second attempt to remove the matter US Bank moved to proceed with the state court proceedings despite the removal notice, which typically would divest the lower tribunal of jurisdiction.

3. The circuit court found it had jurisdiction to proceed with the foreclosure matter since the federal court had already denied the borrower’s first removal request which raised the same grounds for removal. The court’s holding in this regard will withstand challenge based on long-standing precedent. Hopefully, this order will prevent additional delays in the case brought on by frivolous filings.

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