January 21, 2014
On October 25, 2013, the Ohio Court of Appeals in Countrywide Home Loans v. Montgomery held that the Plaintiff had standing to initiate a foreclosure action since it was the party in interest at the time the suit was commenced.
In 2004, Robert Montgomery (“Montgomery”) bought a home in Ohio with a mortgage from Keybank. The mortgage was later bought by Countrywide Home Loans Inc. (“Countrywide”). In 2008, Countrywide filed a foreclosure action against Montgomery. At trial, Montgomery challenged Countrywide’s standing and claimed that it was not the real party in interest because it did not have title to the mortgage at the time the suit was commenced. The trial court later granted a motion for summary judgment by Countrywide.
In March 2012, Montgomery filed for bankruptcy protection and the foreclosure sale was briefly delayed, but was lifted in November 2012 after Countrywide filed a notice of relief. The trial court also denied Montgomery’s multiple motions to vacate the judgment. The Ohio Court of Appeals affirmed the trial court’s summary judgment and denial of Montgomery’s motions to vacate the judgment. The Court of Appeals found that Countrywide was the party in interest at the time the case was commenced. The Court further found that recent jurisdictional case law in Ohio did not apply to the case at bar since it only applied when there was a party, unlike Countrywide, who was not a party in interest at the time the action began. Since Countrywide held the note and mortgage at the time the foreclosure action commenced, it had standing to initiate the action, and the Court therefore affirmed the trial court’s judgment.| Permalink