United States Department of Housing and Urban Development v. Union Mortgage Company

RCR foreclosed on property without naming junior mortgagee Union (defendant) as a required party in interest under Maine statute, then sold the property to itself for the balance owed and transferred title to HUD (plaintiff); because Union was never properly notified, its junior mortgage was never actually foreclosed, and when HUD sought to foreclose Union's remaining interest, the trial court found Union adequately protected merely by its right of redemption, but Union argued it separately retained the right to attend and bid at a public foreclosure sale.