## Facts

- Lisa Helen Hoffman bought a residence in Kansas City, Missouri using a loan from Ameriquest Mortgage Company (Ameriquest), secured by a deed of trust on the property.
- The deed of trust contained the correct legal description, but the property’s street address was misspelled by one letter: “Lester” Drive instead of “Lister” Drive; the zip code was correct.
- After Hoffman defaulted, Ameriquest initiated a Missouri power-of-sale foreclosure and sent the foreclosure-sale notice by certified mail to the address stated in the deed of trust (including the misspelling).
- Despite the misspelling, the certified mail reached the correct post office, and the mail carrier left notice cards at Hoffman’s correct residence advising that certified mail was available for pickup.
- Hoffman did not claim the certified mail.
- Following the foreclosure sale, Hoffman stayed in the property, and Ameriquest sent a second certified-mail notice to the same deed-of-trust address stating that it was suing for unlawful detainer.
- That notice also reached the correct post office, and the carrier again left notice cards at Hoffman’s correct residence; Hoffman again did not claim the certified mail.
- A state court entered judgment for Ameriquest on the unlawful-detainer claim.
- After the sheriff posted an eviction notice on Hoffman’s door, Hoffman filed Chapter 13 bankruptcy and brought an adversary proceeding asking the bankruptcy court to set aside the foreclosure sale, asserting the sheriff’s posting was her only notice of the foreclosure and the unlawful-detainer action.

## Issues

1. Whether Ameriquest’s certified-mail foreclosure notice satisfied Mo. Rev. Stat. § 443.325.3 when the notice was addressed to the deed-of-trust address containing a one-letter street-name misspelling that still resulted in delivery-attempt notices being left at Hoffman’s residence.
2. Whether Hoffman’s lack of actual receipt—caused by her failure to pick up certified mail after receiving postal notice cards—required the foreclosure sale to be set aside.

## Decision

- The court denied Hoffman’s request to set aside the foreclosure sale.
- The court found Ameriquest substantially complied with Mo. Rev. Stat. § 443.325.3’s notice requirements.
- The court ruled the minor street-name misspelling did not invalidate notice where the notices reached the proper post office and the postal service left pickup notices at Hoffman’s correct residence, and Hoffman simply did not retrieve the certified mail.

## Legal Principles

- Under Missouri foreclosure practice, a foreclosure sale will not be set aside for a minor clerical error in the notice address when the lender uses the statutory method (including certified mail) and the process results in meaningful delivery attempts at the borrower’s residence.
- Substantial compliance with Mo. Rev. Stat. § 443.325.3 can satisfy the statute when the notice is mailed to the address specified in the deed of trust and the mail system functions such that the borrower is notified of certified mail awaiting pickup.
- Actual receipt is not required when the creditor provides notice using the method the statute prescribes; a borrower cannot create a notice defect by ignoring certified-mail pickup notices.

## Conclusion

Because Ameriquest sent the certified-mail notices to the address stated in the deed of trust, the notices reached the correct post office, and the postal service left notice cards at Hoffman’s residence giving her an opportunity to retrieve the mail, the one-letter street-name misspelling and Hoffman’s failure to claim the certified mail did not make notice defective under Mo. Rev. Stat. § 443.325.3, and the bankruptcy court refused to set aside the foreclosure sale.


In re Hoffman, 280 B.R. 234 (2002)