Senior Law Clerk
In Ryan v. HSBC Bank USA National Association (Fla. 4th DCA 2026), the Fourth District delivered a pointed reminder in foreclosure litigation: if you are enforcing a lost note, you must prove the chain of note ownership — not just the movement of the mortgage. Because HSBC failed to show who had the right to enforce the note when it was lost, and how HSBC acquired that right, the Fourth DCA reversed the foreclosure judgment and remanded for entry of judgment in favor of the borrowers.
What happened:
HSBC brought a foreclosure action based on a lost-note theory after earlier litigation involving the same loan. At trial, HSBC relied on a combination of evidence, including assignments, a lost note affidavit, servicing records, and witness testimony, to establish standing.
The problem was that the evidence did not connect the dots. While the record showed an earlier assignment of the note to Wells Fargo, the later documents reflected assignments of the mortgage only — not the note itself. That gap proved fatal. The Fourth DCA held that HSBC failed to establish who had the right to enforce the note when it was lost or how HSBC acquired ownership from that party.
Why it matters (for trial lawyers):
This opinion is a strong warning for any plaintiff proceeding on a lost-note count. Courts will not assume that the transfer of a mortgage also proves transfer of the note. And they will not fill in missing links in the chain of enforcement through inference or incomplete business-record testimony.
Key points:
• In a lost-note case, the plaintiff must prove who had the right to enforce the note when it was lost.
• The plaintiff must also prove how it acquired that right, directly or indirectly, from that party.
• Assignments of mortgage alone do not establish transfer of the note.
• If the evidence proves only that the mortgage changed hands, standing may fail.
• Failure to prove standing can result in reversal with directions to enter judgment for the borrower.
Takeaway:
When litigating a lost-note foreclosure, do not assume that servicing records and mortgage assignments are enough. Trace the note itself. Build a clean evidentiary chain showing who could enforce the note at the time of loss and how your client succeeded to that right. Ryan makes clear that if those links are missing, the judgment may not survive appeal.
In lost-note litigation, the note is still everything. If your proof tracks only the mortgage, you may lose the case before you ever reach the amount due.
* * * * * * * * * *
THIS BLOG IS INTENDED FOR GENERAL INFORMATION PURPOSES ONLY. IT DOES NOT CONSTITUTE LEGAL ADVICE. THE READER SHOULD CONSULT WITH KNOWLEDGEABLE LEGAL COUNSEL TO DETERMINE HOW APPLICABLE LAWS APPLY TO SPECIFIC FACTS AND SITUATIONS. BLOG POSTS ARE BASED ON THE MOST CURRENT INFORMATION AT THE TIME THEY ARE WRITTEN. SINCE IT IS POSSIBLE THAT THE LAWS OR OTHER CIRCUMSTANCES MAY HAVE CHANGED SINCE PUBLICATION, PLEASE CALL US TO DISCUSS ANY ACTION YOU MAY BE CONSIDERING AS A RESULT OF READING THIS BLOG.