Warren v. Government National Mortgage Association
United States Court of Appeals for the Eighth Circuit
611 F.2d 1229 (1980)
Warren (plaintiff) purchased a home in Missouri from the United States Department of Housing and Urban Development (HUD), subject to a mortgage held by Government National Mortgage Association (GNMA) (defendant). GNMA was a private corporation but was wholly-owned by the federal government. GNMA was managed by HUD and its mortgages were insured by the Federal Housing Authority (FHA). Warren’s mortgage was secured by a deed of trust, which permitted GNMA, in the event of a default, to foreclose on the property under Missouri law. Warren defaulted on the mortgage. GNMA commenced foreclosure proceedings and ultimately purchased the property at a public sale. The foreclosure was conducted by a trustee that was not a government employee, pursuant to the terms of the deed of trust and Missouri foreclosure law. Warren brought suit against GNMA, claiming that the foreclosure sale violated her Fifth Amendment due process rights. The trial court found that the foreclosure did not invoke the Fifth Amendment because there was no federal action. Warren appealed.
Rule of Law
Holding and Reasoning (McManus, J.)
Concurrence (Ross, J.)
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