BAC Home Loans Servicing, L.P. v. Haas
2014 Ohio 438
Ohio Ct. App.2014Background
- BAC sued Haas for foreclosure on the Main Street property, asserting it held the note and mortgage and Haas were in default.
- The Haases did not answer; mediation was requested and approved, leading to a July 2011 Memorandum of Understanding about a possible loan modification.
- BAC moved for summary judgment in February 2012; the court granted it in April 2012, with a decree of foreclosure issued in June 2012.
- Haas filed for Chapter 7 bankruptcy in August 2012, which stayed foreclosure proceedings; relief from stay was granted later and the trustee abandoned the property.
- In March 2013 Haas moved for Civ.R. 60(B) relief from judgment and for enforcement of the mediation agreement; the court stayed the sale and later denied relief and enforcement, leading Haas to appeal.
- The trial court concluded Haas’s discharge in bankruptcy rendered any settlement to modify the note unenforceable absent reaffirmation; Haas argued meritorious defenses and equity grounds for relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did BAC have standing to foreclose? | Haas | Haas | BAC had standing; indorsed note in blank and assignment via MERS supported holder status |
| Were the 60(B) grounds and defenses meritorious for relief from judgment? | BAC | Haas | No meritorious defenses shown; discharge in bankruptcy mooted modification agreement and relief not warranted |
| Was enforcement of the mediation agreement appropriate post-bankruptcy? | BAC | Haas | Not enforceable after discharge absent reaffirmation; court did not abuse discretion denying enforcement |
| Did the trial court abuse its discretion by not holding an evidentiary hearing on 60(B) motion? | BAC | Haas | No, no required evidentiary hearing given lack of operative facts warranting relief |
Key Cases Cited
- In re Turner, 156 F.3d 713 (7th Cir. 1998) (reaffirmation required to preserve debt after discharge)
- PHH Mortgage Corp. v. Barker, 190 Ohio App.3d 71 (3rd Dist. 2010) (equitable principles may warrant reinstatement of mortgage in loss-mitigation context)
- Griffey v. Rajan, 33 Ohio St.3d 75 (Ohio 1987) (Civ.R. 60(B) relief standards; standard of review for motions)