Skip to content

Ohio Supreme Court To Lenders: Get It Right The First Time

There have been a lot of instances where a lender has started foreclosure proceedings on a property and the homeowner has pointed out that the lender does not have standing and is not in a position to do so.  Then the lender goes back retroactively later, making for a long, expensive legal battle for homeowners.  It has allowed lenders the opportunity to be sloppy when they foreclose, counting on only having to occasionally deal with standing issues.  The Ohio Supreme Court, however, has said no to this practice: (Thank you to our friends at Ohio Fraudclosure!)

The Supreme Court of Ohio ruled that standing to initiate a mortgage foreclosure lawsuit is determined on the date the complaint is filed. A foreclosing party, which lacked standing at the time the suit was filed, CANNOT remedy that defect by obtaining an assignment of a mortgage and promissory note AFTER the filing of the foreclosure action but prior to an entry of a final judgment.

The court’s 7-0 unanimous decision dismissed a decree of foreclosure granted to Federal Home Loan Mortgage Corporation FHLMA (AKA “Freddie Mac”) against Duane and Julie Schwartzwald because FHLMA did not have standing at the time it filed the foreclosure action.

We agree with Ohio Fraudclosure– kudos to the Ohio Supreme Court for doing the right thing.  Lenders have been too sloppy about their foreclosure proceedings– occasionally to the point of foreclosing on homes for which they never had a mortgage, or homes that did not even have a mortgage.  To say that they are keeping them honest isn’t exactly correct– but at least this will help nudge lenders in that direction.

Published inBlog PostsFinance

One Comment

  1. Ceel Ceel

    For the record, DC Case Shller came out tuesday at 194. It was 41 rent payments ago when DC hit 165 and twist reassured it had not bottomed and was simply “late to the party”.

    My question to you Twist is do you (still) think it is just late to the party? If so, how high does it have to go above 165, or how many more months (years) have to pass with it above 165 before you say, “gee, maybe that really was the bottom”.

Comments are closed.