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NON - PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37 HSBC BANK USA IN THE SUPERIOR COURT OF PENNSYLVANIA NATIONAL ASSOCIATION TRUSTEE Appellee

v. KEVIN A. KRONBERG Appellant No. 3365 EDA 2014

Appeal from the Order October 21 , 2014 In the Court of Common Pleas of Montgomery County

Civil Division at No(s): 2010

- 08737

BEFORE: BENDER, P.J.E., DONOHUE, J., and MUNDY, J. MEMORANDUM BY MUNDY, J.: FILED DECEMBER 28, 2015 Appellant, Kevin A. Kroberg, appeals from the October 21, 2014 order denying his “Motion to Set

- Aside Sheriff’s Foreclosure Sale.” After careful consideration, we affirm on the basis expressed in the thorough and well

supported opinion of the Honorable Thomas C. Branca. The trial court summarized the procedural and factual history of this case in its April 27, 2015 opinion, and we need not repeat it here in full. We highlight a few salient points for clarity. Thi s matter commenced with the filing of a mortgage foreclosure complaint by Appellee, HSBC Bank, NA Trustee (HSBC Bank), on April 5, 2010. HSBC Bank obtained a default judgment on May 28, 2010, and the matter proceeded to a sheriff’s sale on December 18, 20 13. Throughout this time, Appellant took no responsive action in the case except to move to adjourn the sheriff’s sale on September

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23, 2013, which was withdrawn later that same day. The motion was refiled on December 17, 2013 and denied the following da y. The property was sold at a sheriff’s sale on February 10, 2014. The sheriff’s deed was delivered and recorded on February 20, 2014. Not until March 5, 2014, did Appellant file the instant petition to set aside the sheriff’s sale. After hearing
argum ent, and receiving briefs from the parties, the trial court denied Appellant’s petition on October 23, 2014. Appellant filed a timely notice of appeal on November 19, 2014. 1 

### On appeal, Appellant raises the following issues for our review. (1) Did the tr ial court commit an error of law in denying Kronberg’s Motion to Set

- Aside Sheriff’s [F]oreclosure Sale when [HSBC Bank] (Plaintiff below), foreclosing lender did not have “authority”/standing to execute on its foreclosure judgment for want of a pre

- judgme nt record assigned mortgage and negotiated transferred note such as to allow foreclosing lender to have conducted its Sheriff’s Sale? (2) Did the trial court commit an error of law in denying a requested evidentiary hearing, or, alternatively, discovery towards oral argument? Appellant’s Brief at 8. 2

____________________________________________ 1 

### Appellant and the trial court have complied with Pennsylvania Rule of Appellate Procedure 1925.

2 

### Appellant failed to include his second issue in his Rule 1925(b) statement. Therefore, we conclu de this issue is waived. See Commonwealth v. Hill , 16 A.3d 484, 494 (Pa. 2011) (holding “any issues not raised in a Rule 1925 ( b ) statement will be deemed waived”).

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We note the following standards guiding our review of this appeal.

Pursuant to Rule 3132 of the Pennsylvania Rules of Civil Procedure, a sheriff’s sale may be set aside upon petition of an interested party “upon proper cause shown” and where the trial court deems it “just and proper under the circumstances.” Pa.R.C.P. 3132. The burden of proving circumstances warranting the exercise of the court’s equitable powers is o n the petitioner. Equitable considerations govern the trial court’s decision to set aside a sheriff’s sale , and this Court will not reverse the trial court’s decision absent an abuse of discretion. An abuse of discretion occurs where, for example, the tr ial court misapplies the law. Nationstar Mortgage, LLC v. Lark , 73 A.3d 1265, 1267 (Pa. Super. 2013). [Pennsylvania] Rule [of Civil Procedure] 3135 makes

it clear that a party has 20 days to take exceptions before the sheriff executes a sheriff’s deed. Taken together, Rule 3132 and 3135(a) make clear a party must raise a challenge to a sheriff’s sale within a period of time after the sale , but before the deed is delivered. Mortgage Elec. Registration Sys., Inc. v. Ralich , 982 A.2d 77, 80 (Pa. Super. 200 9), appeal denied , 992 A.2d 889 (Pa. 2010). “There is an exception to this time bar, however. A sheriff’s sale may be set aside after delivery of the sheriff’s deed based on fraud or lack of authority to make the sale.” Id. (citations omitted).
Instant ly, Appellant’s petition was patently late. However, Appellant asserts that he has demonstrated lack of authority for the sheriff’s sale, because “[t]he failure of a pre

- judgment record assigned mortgage and

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negotiated transferred note through the chain o f loan title precludes foreclosing lender’s authority/standing to have executed thereupon its default judgment ....” Appellant’s Brief at 14. Essentially, Appellant claims the sheriff had no authority to sell the property because HSBC Bank allegedly lacked standing at the time it brought the suit. Id. We agree with the trial court that Appellant’s claim is meritless. Standing is a non

- jurisdictional and waivable issue. In re Condemnation by Urban Redev. Auth. of Pittsburgh , 913 A.2d 178, 181 n.6 (Pa. 2006). Any challenges to a party’s capacity to sue must be raised in preliminary objections or in an answer to the complaint. In re Estate of Alexander , 758 A.2d 182, 189 (Pa. Super. 2000); see also Pa.R.C.P., Rule 1028(a)(5). The issue of standing to sue is waived unless specifically raised in a preliminary objection or in the answer to the complaint. Erie Indem. Co. v. Coal Operators Cas. Co. , 272 A.2d 465, 467 (Pa. 1971). Appellant never challenged HSBC Bank’s standing during the foreclosure procee dings, and has waived the issue. We also agree with the trial court that HSBC Bank’s various pleadings and averments were adequate on their face to indicate HSBC Bank’s standing was proper. Trial Court Opinion, 4/27/15, at 6

- 7. Accordingly, we adopt the April 27, 2015 opinion of the Honorable Thomas C. Branca as our own for the purposes of our disposition of this appeal. We conclude the trial court did not abuse its discretion when it denied Appellant’s petition to set aside the sheriff’s sale in this ca se. See

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Lark , supra . Accordingly, we affirm the trial court’s October 21, 2014 order. Order affirmed. Judgment Entered.

Joseph D. Seletyn, Esq. Prothonotary

Date: 12/28/2015I Order is docketed 10 / 23 / 14. 2 In its Complaint, Pl a intiff identifies itsel f as "HSBC Bank USA, Nati o n a l Associ a tion, as T rustee, Under th e Pooling and Servicing Agr e ement, dated May I , 2 004, Fr e mont Hom e Loan Trust 2004-B, AssetBacked Certificates , S e ries 2004-B 4828 Loop C e ntral Driv e Houston , T x . 77081022 2 6." Issue Writ of Ex e cution

. [Praecipe, 6 / 23/1 OJ. Strike and/or Open the Default Judgment. On June 23, 2010, Plainti ff filed a Praecipe to Prothonot a ry ent e r e d judgment against Defendant. Defend a nt did not file a P e tition to F a ilure to Answer and Assessment of Damages, at w hich point the Montgom e ry County Pennsylvania.' Thereafter, on May 28, 2010, Plaintiff filed a Praecipe for Judgment For Defendant/Mortgagor of the property locat e d at 926 Columbia A venu e, Lansdale , together with interest, oth e r costs , fe es and applicabl e charg e s, against Mortgage Foreclosure, seeking an in rem judgment in the amount o f $157,125. 92, This suit commenced on April 5, 2010 with Plaintiff's filing o f a Complaint in 

### II. STATEMENT OF THE CASE For the following reasons, the Court's Order should be AFFIRMED. dated October 21 , 2014 , denying his Petition to Set Aside Sheriff's Foreclosur e Sale. 1 Defendant, Kevin Kronenberg appeals to the Superior Court this CoU11's Order 

### I. INTRODUCTION April 27, 2015 

### Branca, J. 

### OPINION OF THE COURT KEVIN A. KRONENBERG

Defendant 

# 1 111 rJiM(~J~D

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2010 -08 737-0061 4 / 27 / 2015 11: 4 6 AM # 10273856 Opini on R c pt #Z 2388 80 2 foi : $ 0.00

Mark L~, 'Y - Mon tCo Pro thonotar y v. NO. 10-08737 3365 EDA 2014 HSBC BANK USA, NATIONAL ASSOCIATION TRUSTEE Plaintiff IN THE COURT OF COMMON PLEAS OF MONTGOMERY COUNTY, P E NNSYLVANIA CIVIL ACTION - LAW Circulated 12/15/2015 10:49 AM3 The record also reflects the document entitled "D e ed Poll Acknowl e dg e d & Returned to Sheriffs Office, " was filed on February I 0 , 2014. S ee Montco. Local Rule 3135. 2 5

. For the foregoing, the within Sheriff's foreclosure Sale should be setaside. 4

. Upon information and belief (for preservation, discovery, and evidentiary examination at hearing or otherwise), Plainti f f's judgm e nt and thus execution thereupon by Sheriff's Sale was without

" a uthority" and therefore w a s a " fraud" upon this Honorable Court for failure of Plaintiff to have been the pre-judgment (if not pre-Sal e ) record mortgage assignee and note transferee through th e chain of loan title. U.S. Bank, N.A. v. Mallory, 982 A.2d 986 (Pa. Super. 2009). 3. For "want of authority" or "fraud," a Sheriff's foreclosure Sale may beset-aside subsequent to the Sheriff's Deed Poll recordation. ConcordLiberty Savings & Loan Assoc., et al. v. NTC Properties, Inc., 454 Pa. 472 (1973) (citing Panison v. Erb, 424 Pa. 306 (1967)). 2. Upon information and belief, the Sheri f f's Deed Poll has been recorded to Plaintiff. 1. This is an action in mortgage foreclosure with sheriff's foreclosure sale of Defendant's property having concluded

. Mot., 3/5/14]. The following sets forth the entirety o f D e fendant's Motion: sought relief from the Sheriff's Sale, by filing an untimel y Motion to Set Aside. [Def

. ' s On March 5 , 2014, nearly two months after deliv e ry of the Deed, Defendant [Recorder's Certification, 2/20/14]. Plaintiff, was delivered on December 18, 2013, and recorded on February 11, 2014. of Deeds further certified that a Sheriff's Deed, conveying the subject property to [Pl.'s Resp., 3/20/14, Ex. A]. 3 On February 20, 2014, the Montgomery County Recorder presence of' Greg Womelsdorf, th e Acting Sheri ff , and r e corded on Febru a ry 11, 2014. Property, 2/10/14]. On, January 13, 2014 , the Deed was " S e aled and D e livered in the Sheriff's Sale on the Writ for the sum of $2,360.67. [Sheri f f's Certific a tion of Sale o f More than thre e years later, on December 18 , 2013 , the property was sold at Circulated 12/15/2015 10:49 AM3 4 Order is docketed I 0/23/ 14

. 2. Whether the trial court erred in finding Plaintiff was the pre-judgment record assigned mortgagee and recipient of the negotiated transferred note such as to allow it to have conducted its Sheriffs Sale? l. Whether the trial court erred in denying Defendant-Appellant's Motion to Set Aside Plainti f

fs Sheriffs foreclosure Sale? "l 925(b) Statement"): the following Concise Statement of Matters Complained Of On Appeal (Pa. R.A.P. Thereafter, on January 8, 2015, Defendant timely filed and served upon the undersigned October 21, 2014. 4 Defendant filed a timely Notice of Appeal on November 19, 2014. Sheriffs Foreclosure Sale, the undersigned denied Defendant's Motion by Order dated to Defendant's Reply Memorandum in Support of Defendant's Motion to Set-Aside Foreclosure Sale, as well as Plaintiffs Supplemental Memorandum of Law in Opposition Memorandum of Law in Support of Defendant's Motion to Set Aside Sheriffs After argument and submission of Defendant's post-argument Supplemental [Def.'s Mem., 3/5/14]. Incorporating by reference Defendant's attached motion, Defendant reserves the right to supplement this motion through discovery and/or at hearing or otherwise as more information becomes available. following sentence: in Support of his Motion lacked any legal analysis and, instead, was limited to the repeating the prayer for relief set forth in his Motion, Defendant's Memorandum of Law [Def.'s Mot. to Set-Aside, 

## ,r ,r 1-5, 3/5/14] (transcribed exactly as drafted). In addition to 6. WHEREFORE, Defendant, Kronenberg, respectfully requests this Honorable Court set-aside Plaintiffs Sheriffs foreclosure Sale consistent with the attached proposed Order. To the extent this Honorable Court entertains denying Defendant's within motion, Defendant respectfully requests an evidentiary hearing or, in the alternative, oral argument before this Honorable Court as to Plaintiffs "want of authority"/"fraud". Circulated 12/15/2015 10:49 AM4



### 982 A.2d at 80. authority to make the sale. See Mortgage Electronic Registration Systems, Inc

. v . Ralich, after delivery of the deed, but only where the movant demonstrates fraud or lack of applies in limited circumstances which may permit a Court to set aside a sheriffs sale (internal citation omitted)). A narrow exception to Pa. R.C.P. 3 l 32's strict time bar delivery of a sheriff's deed divests the court of the authority to set aside a sheriff's sale." Ralich, 982 A.2d at 79 ("The trial judge struck the Ralichs' Petition as untimely because authority to set aside a sheriff's sale. Mortgage Electronic Registration Systems, Inc. v. Moreover, it is well-settled that delivery of the deed divests the court of the Mortgage Electronic Registration Systems, Inc., 982 A.2d at 79. exercise its equitable powers to set aside

. Nationstar Mortg. , LLC, 73 A.3d 1265 at 1267; circumstances warranting relief, and only "upon proper cause shown," will the trial court Ralich, 982 A.2d 77, 79 (Pa. Super. Ct. 2009). Petitioner bears the burden of proving sheriffs delivery of the deed. Id.; See Mortgage Electronic Registration Systems, Inc. v. Id. (emphasis added). To be timely, a petition to set aside must be filed before the Upon petition of any party in interest before delivery of the personal property or of the sheriffs deed to real property, the court may, upon proper cause shown, set aside the sale and order a resale or enter any other order which may be just and proper under the circumstances. A.3d 1265 (Pa. Super. Ct. 2013). Pursuant to Pa. R.C.P. 3132: aside sheriffs sale absent an abuse of discretion. Nationstar Mortg

. , LLC v . Lark, 73 An appellate court will not reverse a trial court's decision denying a petition to set III. DISCUSSION 3. Whether the trial court erred in finding Plaintiff had standing/authority to have conducted its Sheriffs' Sale? Circulated 12/15/2015 10:49 AM

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suggestion, the r ec ording of an assignment of the mortgage was not a prerequ i site to Mallory , 982 A.2d 986, 994 (Pa

. Super

. Ct. 2009) ( " Simply put , con t rar y to Appellant's enforcement of the mortgage v ia a mortgage foreclosure action. US. Bank , NA. v . assignment of th e mortgage is not a prerequisite to mortgagee's standing to s ee k In US. Bank, NA

. v. Mallor y, the Superior Court held that th e recording of an 00870 , et s eq.]. Mortgage, Bk. 11009, PG. 02144; s ee also, Assignm e nt of Mortgage , Bk. 12595, PG have the authority to conduct the Sale which occurr e d on D e c e mber 18 , 2013

. [See despite Defendant ' s claim regarding the underlying judgment , the Sheriff did indeed , cursory review of the record, including the recorded mortgage assignments, reflects that to merit r el ief from the Court. S ee Pa

. R

. C.P. 3123; s ee Ralich , 982 A.2d 77 , 80. A deliver e d on January 13, 2014, he was required to demonstrate fraud or lack o f authority As previously discussed, because Defendant filed his Motion after th e Deed was Defendant's assertion is m e ritless. authority to the Sh e riff to conduct the sale, and th e judgment was not void 

### ab initio, without authority. As D efe ndant acquiesced at every critical stage e ffe ctively conceding possession of the note, and therefore , the subsequent Sheriffs Sale was conducted the assignment o f the Mortgage to Plaintiff had not yet been recorded, nor was Plainti ff in t a ken b y default on May 28, 2010, was entered without the re quisit e legal basis because pleading, the basis of Defendant's claim appears to be that the underlying judgment, Sale was tainted by fraud or lack of authority. Whil e not entirely clear from Defendant's denied Defendant's Motion to Se t Aside where he fa iled to establish t hat the Sheriff s D e spite Defendant's bald assertion s , and as discussed below, the Court properly The Court Properly Denied Defendant's Motion To Set Aside Where Defendant Failed to Demonstrate The Requisite Fraud or Lack of Authority. Circulated 12/15/2015 10:49 AM6

answer, Defendant has conceded to the legal inference that at all relevant times Plaintiff Complaint or seek to open or strike the default judgment entered thereon for want of an indicated it was the holder of the mortgage's note.") As Defendant failed to answer the averment in its complaint that it was the "legal owner" of the mortgage sufficiently of the mortgage's note. 

### US. Bank, NA., 982 A.2d at 994 (Determining that mortgagee's asserted in the instant case, sufficiently indicates that the foreclosing party is the holder mortgage foreclosure that the foreclosing party is the legal owner of the mortgage, as transferee of the note, it is now well-established that an averment in a complaint in Moreover, with regard to Defendant's bald assertion that Plaintiff was not the A.2d at 994. of judgment, nor did 

### it undermine the legality of that judgment. 

### See US. Bank, NA., 982 not recorded until November 16, 2010 did not deprive Plaintiff of standing to seek entry Plaintiff at the time it sought entry of default judgment. The fact that the assignment was review of the May 17, 2010 assignment reflects that the Mortgage had been assigned to authority to initiate the entry of default judgment by the Prothonotary on May 28, 2010, a as of the date of the Sheriff's Sale. While Defendant asserts that Plaintiff lacked [Comp 

### I., at ~3, 4/5/1 

## OJ. That assignment and all subsequent assignments were recorded On 02/03/2004 mortgagor(s) made, executed and delivered a mortgage

... which mortgage is recorded in the Office of the Recorder of Montgomery County, in Mortgage Book No. 11009, Page 2144. By Assignment of Mortgage recorded 02/27 /2008 the Mortgage was assigned to Fremont Investment & Loan which Assignment is recorded in Assignment of Mortgage Book No. 12332, Page 2671. The Plaintiff is now the legal owner of the mortgage and is in the process of formalizing an assignment of same. 2010. In that Complaint, which went unanswered, Plaintiff asserted: foreclosure action.") In this case, Plaintiff initiated suit by filing a Complaint on April 5, Appellee having standing to seek enforcement of the mortgage via a mortgage Circulated 12/15/2015 10:49 AM7 5 It should be noted that Defendant is not at risk to being twice held to satisfy the debt of the note even if Plaintiff was not the holder of the note as the debt was satisfied by the Sheriffs Sale

. 13 Pa. C.S. 3602(a); JP Morgan Chase Bank, N.A. v . Murray, 63 A

. 3d 1258, 1263 (Pa. Sup e r. Ct

. 2013). 6 See Bank of New York f/k/a The Bank of New York, As Trust ee for the Certificate Holders of the CWMBS Inc., CHL Mortgage Pass-Throu g h Trust 200 7- 17, Mortgage Pass-Throu g h Certificate, Seri e s 200 7-17 v. Chughtai, No. 1376 EDA 2014 , 1.0

. P. 65.37 , Concurr

. , at *5 (Pa. Super. Ct. Mar. 20, 2015)) ("That the assignment had not in fact been recorded at the time that the complaint was filed did not render the record deficient on its face such that the judgment was void; at most it merely was voidable.") (internal citation omitted); Id

. at *4 ("A voidable judgment may be stricken only when the petition is filed 'within a reasonable period foJJowing the entry of the judgment."') (internal citation omitted)

. 7 Bank of New York Pk/a The Bank of New York, As Trustee for the Certificate Holders of th e CWMBS Inc., CHL Mortgage Pass-Through Trust 2007-17, Mortgage Pass-Through C e rtificate , Series 2007-17, Concurr., at *2-3 ("Th e difficulty here is that, despite undisputedly having received personal service of BNY's foreclosure complaint on the subject property, Chughtai did not contest BNY ' s complaint, which led to the entry of a default judgment. Chughtai also did not later seek to open or strike that default judgment in a timely manner, effectively acquiescing to the judgment. Because the sheriffs authority Jay in the writ of execution entered upon the default judgment, which Chughtai also did not chaJJenge , only by establishing that the default judgment was void ab initio might Chughtai prevail in his challenge to the sheriffs sale

. ") merit. conduct that Sale. 7 For all of the aforementioned reasons, Defendant's appeal is without judgment upon which a writ of execution issued granting to the Sheriff authority to entry of default judgment and to proceed to Sheriffs Sale on the unchallenged default As discussed above, the record amply supports Plaintiffs authority to both seek 

### If a plaintiff has commenced an action in his or her own name and thereafter transfers the interest therein, in whole or in part, the action may continue in the name of the original plaintiff, or upon petition of the original plaintiff or of the transferee or of any other party in interest in the action, the court may direct the transferee to be substituted as plaintiff or joined with the original plaintiff. basis to invalidate the subsequent Sale. Pursuant to Pa. R.C.P. 2004: property at various points throughout this action against Defendant does not serve as a Finally, the fact that another similar entity may have held legal ownership of the Without question the judgment was not void 

### ab initio under these circumstances. 6 was in possession of the note which the mortgage, clearly assigned to Plaintiff, secures. 5 Circulated 12/15/2015 10:49 AM8 Secretary \ ....._ Copies of the above Opinion mailed on l{ 

### /J.l /15 to : By First Class Mail: Lauren Tabas , Esquire Matthew B. Weisberg, Esquire By Interoffice Mail: Court Administration 

# Chum /\ ~J\Jl

Q J\ 2014, denying Defendant's Motion to Set Aside should be AFFIRMED. For all of the aforementioned reasons, the trial court's Order dated October 21, IV. CONCLUSION Circulated 12/15/2015 10:49 AM