Asset Mgt. West 9, L.L.C. v. McBrayer
2014 Ohio 2479
Ohio Ct. App.2014Background
- In 2007 Dennis McBrayer executed a $212,800 promissory note to GreenPoint Mortgage Funding, secured by a mortgage on the McBrayers' property.
- GreenPoint entered bankruptcy; GreenPoint endorsed the note to Asset Management West 9, LLC (Asset West) and Asset West recorded an assignment of the mortgage in 2011. West Coast Servicing acted as Asset West’s servicer.
- McBrayer defaulted in February 2012; Asset West accelerated the loan and filed a foreclosure action in August 2012. Asset West moved for summary judgment and sought to quiet title issues necessary for foreclosure.
- Asset West supported its motion with the endorsed note, recorded mortgage assignment, a servicer affidavit, and a payment history showing amounts due.
- The McBrayers opposed summary judgment, asserting (1) Asset West was not the owner/holder of the note and mortgage, (2) prior deed defects rendered the chain of title problematic, and (3) the amount claimed due was incorrect.
- The trial court granted summary judgment for Asset West and ordered foreclosure; the McBrayers appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to foreclose / entitlement to enforce the note | Asset West is the holder/entitled to enforce the note because GreenPoint endorsed the note to Asset West and the mortgage was assigned to Asset West | McBrayers: Asset West is not the owner/holder; chain-of-title and possession are disputed (and West Coast may own/hold) | Asset West shown to be holder/entitled to enforce; West Coast is servicer only; Asset West may foreclose |
| Validity of mortgage assignment / right to challenge assignment | Asset West: assignment recorded and unchallenged by assignors; servicer affidavit corroborates possession | McBrayers: assignment invalid because Asset West employee prepared it; challenging assignment validity | Debtor lacks standing to challenge assignment between assignors; no genuine factual dispute on assignment validity |
| Prior deed defects and title issues | Asset West: raised and remedied two chain-of-title defects in judicial report; default and evidence extinguished claims | McBrayers: prior deeds contained signature/POA defects that could invalidate mortgage or cloud title | Court found defects did not divest McBrayers of ownership and no genuine issue of fact; quiet title issues resolved favorably to allow foreclosure |
| Amount due on note | Asset West: payment history and servicer affidavit establish $211,406.15 owed (plus fees/ costs) reflecting adjustable-rate history, unpaid interest, and acceleration costs | McBrayers: they made payments and the balance should be lower; they dispute Asset West's stated amount | McBrayers offered no evidentiary support; bald dispute insufficient; court accepted Asset West’s calculation |
Key Cases Cited
- Harless v. Willis Day Warehousing Co., 54 Ohio St.2d 64 (Ohio 1978) (explains moving party’s burden to demonstrate no genuine issue of material fact on summary judgment)
- Mootispaw v. Eckstein, 76 Ohio St.3d 383 (Ohio 1996) (nonmoving party must set forth specific facts by affidavit or otherwise showing a genuine issue of fact)