CitiMortgage, Inc. v. Patterson
2012 Ohio 5894
Ohio Ct. App.2012Background
- CitiMortgage sued Patterson for foreclosure on 9/20/2006 based on a note and mortgage.
- The note originally named First National Bank of Arizona; the note had a blank-endorsed allonge.
- CitiMortgage obtained an assignment of the mortgage to CitiMortgage on 9/29/2006 and recorded it 10/13/2006.
- A default judgment was entered after a default hearing (2008) following a stay during the Pattersons’ Chapter 7 proceedings.
- Sheriff’s sales occurred (2008 and 2011) with interim vacatons; CitiMortgage sought to restore foreclosure, but the court vacated the 2011 sale and judgment under Civ.R.60(B).
- The Ohio Supreme Court decisions (Schwartzwald; Jordan) concerned whether standing at filing is required and whether later assignments can cure standing; the court ultimately held CitiMortgage had standing at filing and reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue at filing in foreclosure | CitiMortgage had standing via possession of the bearer note. | Patterson argues lack of standing at filing cannot be cured. | CitiMortgage had standing at filing; lack of standing cannot be cured by later assignment. |
| Civ.R. 60(B) relief validity | Relief granted due to lack of standing; error to vacate. | Relief appropriate to rectify error or default. | Rule 60(B) relief reversed; standing issue controls outcome. |
| Civ.R. 17(A) cure for standing | Civ.R. 17(A) could cure pre-judgment standing defects. | Jordan limits cure of standing post-filing; cannot substitute faultless party. | Civ.R. 17(A) cannot cure lack of standing at filing; holding relies on Schwartzwald. |
Key Cases Cited
- Wells Fargo Bank, N.A. v. Jordan, 8th Dist. No. 91675, 2009-Ohio-1092 (Ohio App. 8th Dist. (2009)) (standing determined at filing; substitution after filing not curing)
- Fed. Home Loan Mtge. Corp. v. Schwartzwald, Slip Opinion No. 2012-Ohio-5017 (Ohio Supreme Court (2012)) (holding that lack of standing at filing cannot be cured by later assignment; standing exists if holder or proper interest at filing)
- Schwartzwald (Fed. Home Loan), - (-) (see Schwartzwald cited above)