WEST PALM BEACH — Florida's Fourth District Court of Appeal recently ruled against a Florida homeowner in a foreclosure case.

According to the court's June 14 opinion, Wells Fargo Bank filed an appeal against homeowner Suleiman F. Sheikha after the lower court ruled in her favor. It granted Sheikha's motion for involuntary dismissal under the notion that Well’s Fargo allegedly couldn’t prove that Fannie Mae transferred the note to Wells Fargo before the latter bank cancelled a special seal of approval. 

Still, the appeals court said the trial court made an error because Wells Fargo was allowed to cancel the endorsement. 

Wells Fargo is considered the successor for the interest in the original mortgage. It had the note when it filed for foreclosure against the appellee. 

Wells Fargo executed the note for World Savings Bank. Before it filed the foreclosure claim, World Savings Bank became Wachovia and then partnered with Wells Fargo. Wells Fargo subsequently presented Sheikha's default status on the loan as well as evidence of damages to the trial court.

That’s when the trial court ruled in favor of Sheikha's request for involuntary dismissal, claiming that the bank didn’t prove that Fannie Mae actually transferred the note to Wells Fargo. 

The appeals court, however, said Wells Fargo was allowed to cancel the special instructions. According to the decision, there are two things that could have happened to the note after it was endorsed: Wells Fargo reacquired the note from Fannie Mae, or World Savings Bank didn’t transfer the note to begin with. But either way, Wells Fargo had the right to cancel it, the appeals court ruled. 

If Wells Fargo reacquired the note, the appeals court said the bank was “entitled” to cancel the instructions when it was listed as an owner of the note. If World Savings Bank didn’t transfer it to begin with, Fannie Mae was never an owner of the note.

Considering this, the appeals court reversed the dismissal and remanded the case for further proceedings.

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Florida 4th District Court of Appeal
1525 Palm Beach Lakes Boulevard
West Palm Beach, FL - 33401

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