United States District Court, D. Massachusetts
DEUTSCHE BANK NATIONAL TRUST COMPANY, As Trustee of Ameriquest Mortgage Securities, Inc. Asset Backed Pass Through Certificates, Series 2005-R3, Plaintiff,
GINA GRANDBERRY, Defendant.
MEMORANDUM & ORDER
Nathaniel M. Gorton United States District Judge.
case arises out of a dispute over the ownership of a mortgage
(“the Mortgage”) and an Adjustable Rate Note
(“the Note”). Deutsche Bank National Trust
Company, as Trustee of Ameriquest Mortgage Securities, Inc.
Asset Backed Pass Through Certificates, Series 2005-R3
(“Deutsche Bank” or “plaintiff”)
maintains that it is the holder of record of the Mortgage and
the Note and that Gina Grandberry (“Grandberry”
or “defendant”), the owner of the mortgaged
property, created a cloud on the title thereof by recording
an affidavit at the Registry of Deeds that denied that
Deutsche Bank was the holder of either the Mortgage or the
Bank brings this action for declaratory judgment that it is
the rightful mortgagee and noteholder, is entitled to pursue
foreclosure and that the affidavit recorded by defendant
actually creates a cloud on the title of the subject property
that should be removed. Pending before this Court is
defendant's motion to dismiss on the grounds that
Deutsche Bank 1) lacks standing to bring its claims, 2) has
failed to state a claim upon which relief can be granted and
3) is barred from bringing this action for both claim and
issue preclusion. For the reasons that follow,
defendant's motion will be denied.
The Mortgage and the Note
Plaintiff is a nationally chartered bank with a principal
office located in Santa Ana, California. Grandberry is an
individual who resides in Lynn, Massachusetts.
April, 1999, Grandberry took title to residential property
(“the Property”) in Lynn, Massachusetts, pursuant
to a quitclaim deed from Federal Home Loan Mortgage
Corporation. That deed was recorded with the Essex District
Registry of Deeds (“the Registry”). In February,
2005, Grandberry executed the Mortgage and the Note in the
amount of $334, 950 in favor of Ameriquest Mortgage Company
(“Ameriquest”). The Mortgage was recorded with
the Registry in March, 2005.
April, 2005, the Mortgage and the Note were securitized and
the Note was transferred to Deutsche Bank as trustee of the
Series 2005-R3 Certificates. In February, 2007, Ameriquest
assigned the Mortgage to Deutsche Bank and that assignment
was also recorded with the Registry.
December, 2011, Deutsche Bank foreclosed on the Mortgage and
purportedly took title to the Property. The foreclosure deed
was recorded in the Registry in January, 2012. Shortly
thereafter, plaintiff filed a summary process action to evict
Grandberry from the Property. In October, 2013, the Northeast
Housing Court determined that the foreclosure sale was
invalid and entered judgment in favor of Grandberry.
December, 2016, Grandberry executed an Affidavit of
Clarification of Title (“the Affidavit”) pursuant
to M.G.L. c. 183, § 5B, in which she stated that
Deutsche Bank was not the holder of the Mortgage or the Note.
That affidavit was subsequently recorded with the Registry in
February, 2017. Deutsche Bank recorded the decision of the
Northeast Housing Court with the Registry in March, 2017,
thereby rescinding the foreclosure deed.
September, 2016, Grandberry filed a civil action against
Deutsche Bank in the Northeast Housing Court. In June, 2017,
she filed a motion to compel Deutsche Bank to pay her water
and sewer bills after the water to her Property was
disconnected. After the Court determined that the foreclosure
had been rescinded and that Grandberry was still the owner of
the property, it denied her request to compel Deutsche Bank
to pay her bills.
December, 2017, Deutsche Bank initiated the present action.
It asserts that Grandberry created a cloud on the title by
recording her Affidavit which adversely affects
plaintiff's ability to foreclose on the Mortgage. In
September, 2018, defendant filed a motion to dismiss on the