The Second Appellate District affirmed a judgment. The court held that a beneficiary under a deed of trust had authority to initiate foreclosure proceedings and invoke the tender rule against a defaulting borrower, even when the beneficiary was not the holder of the original promissory note.
Joseph Huynh purchased a home, using the proceeds of a loan from New Century Mortgage Corporation that was secured by a deed of trust on the house. The deed of trust named Mortgage Electronic Registration Systems (MERS) as the lender’s nominee and beneficiary of the trust. MERS assigned the beneficial interest to Avelo Mortgage, LLC. Prior to the assignment, Avelo executed a substitution of trustee replacing the original trustee with Quality Loan Service Corporation.
