Provident Funding Associates, LP v. Jones, 31 Mass. L. Rptr. 37 (2013)

Citation: Provident Funding Associates, LP v. Jones, 31 Mass. L. Rptr. 37 (2013)
Parent Document: Provident Funding Associates, LP v. Jones, 31 Mass. L. Rptr. 37 (2013)
Jurisdiction: Massachusetts (state)
Effective Date: 2013-02-27
Original Source: https://www.courtlistener.com/opinion/8358209/provident-funding-associates-lp... ↗

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Despite the defendants’ argument, Ms. Santos bought the property and obtained the mortgage from Provident in August 2007, but Freddie Mac sent the letter to Provident in August 2008. Therefore, the Freddie Mac letter did not put Provident on any kind of notice that the Santos loan was fraudulent until after it had lent the money to Ms. Santos. While the Supreme Judicial Court has noted that “parties may not establish themselves as bona fide purchasers simply by claiming they were bñssfully unaware of facts to which they closed their eyes,” actual or constructive notice of defects in title are required to call a party’s bona fide purchaser status into question. Bevilacqua v. Rodriguez, 460 Mass. 762, 779 (2011), citing Demoulas v. Demoulas, 428 Mass. 555, 577 (1998) (internal quotation marks omitted); see Brown v. Carlson, 26 Mass. L. Rptr. 61 (2009) (in a case on simüar facts the court held that the former homeowner did not estabUsh that the lender “had actual or even constructive knowledge of [the former home owner’s] victimization by [a third party] . . . such as to defeat [the lender’s] status as a bona fide mortgagee for value”).

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