Deutsche Bank National Trust Company appeals summary judgment for Mark Dill Plumbing Company, Mark E. Neff, and Invironmental Technologies, LLC. (collectively, “Appellees”). Deutsche Bank owned a mortgage on Welch’s property. Deutsche Bank filed a mortgage foreclosure action against Welch, but did not join any of the Appellees as parties. The foreclosure proceeded to judgment and Deutsche Bank purchased Welch’s real estate at a Sheriff’s sale. Thereafter, Deutsche Bank learned of the judgment liens belonging to Appellees, and filed an action to remove their liens. Appellees individually answered, and Neff and Invironmental counterclaimed to foreclose their liens. Deutsche Bank then filed a motion for summary judgment, claiming the Appellees’ liens were subordinate to Deutsche Bank’s interest and claiming Appellees’ rights and equity should be cut off. Neff filed a cross-motion for summary judgment, which Dill Plumbing and Invironmental joined, that requested Deutsche Bank’s equity of redemption be foreclosed and another Sheriff’s sale be held to satisfy the amounts owed to Appellees. After a hearing, the court denied Deutsche Bank’s motion and granted Appellees’ motion.
Conclusion (slip op. at 8): We affirm the summary judgment for Dill Plumbing, Neff, and Invironmental.
Key Analysis (slip op. at 6, 8): When junior lienholders are not made parties, the foreclosure and sale cannot be enforced against them . . . Deutsche Bank foreclosed its mortgage without making Appellees parties. Deutsche Bank acknowledges Appellees’ liens were properly recorded; its agent that conducted the title search presumably missed them. Accordingly, Deutsche Bank should have known about Appellees’ liens. The trial court ordered the property sold to satisfy the liens belonging to Appellees and . . . the trial court reached the proper result.