How To Check If Your Lender Has Legal Standing In Ohio Foreclosures

When a bank or mortgage company begins the process of foreclosure, most homeowners assume the lender automatically has the right to take their house. But in Ohio, that’s not always the case. To foreclose, the lender must first prove that it has “standing,” or the legal authority to enforce the mortgage and collect the debt. If the lender cannot prove standing, the foreclosure case can be delayed or even dismissed.

Understanding how courts evaluate standing can empower homeowners to defend their rights. In this article, the Dayton, OH, foreclosure defense lawyers at Kohl & Cook Law Firm, LLC, will discuss the legal concept of standing and how you can work it to your advantage.

What does “standing” mean? 

Standing simply means that the party bringing the foreclosure case is the correct party with the legal right to enforce the note and the mortgage. Since mortgages are often sold or transferred between banks and investors, the company trying to foreclose may not actually own the loan. Failing that, they may not have the paperwork to prove they own the loan.

In Ohio, the lender must have standing at the time the foreclosure case is filed. When they don’t, the case can be thrown out.

Key documents that the lender must provide

To prove standing, lenders typically need to produce:

• The Promissory Note – This is the original loan agreement signed by the borrower. If the note has been transferred, the lender must show a valid assignment or endorsement proving it now owns the loan.
• The Mortgage or Deed of Trust – This document secures the loan with the property. It should match the note and show the borrower’s agreement to the terms.
• Assignments or Endorsements – Each time the loan changes hands, there must be a record (assignment or endorsement) showing the transfer. Missing or incomplete assignments can raise questions about ownership.

Without these documents, the lender may not be able to prove that it has the right to foreclose.

Key documents the lender must provide 

To prove standing, the lender must typically produce:

• The promissory note – This is the original loan agreement signed by the homeowner. If the note has been transferred, the lender must show a valid assignment or endorsement proving it now owns the loan.

• The mortgage or deed of trust – This document secures the loan with the property. It should match the note and show the borrower’s agreement to the terms.

• Assignments or endorsements – Each time the loan changes hands, there must be a record (assignment or endorsement) showing the transfer. Missing or incomplete assignments can raise questions about ownership.

Without these documents, the lender may not be able to prove that it owns the loan. In that case, they may not be able to foreclose.

Common problems with standing 

• Incomplete paperwork – Missing assignments or improperly endorsed notes are frequent issues for lenders.

• Multiple transfers – Loans that have been sold multiple times are more likely to have gaps in documentation.

• Timing errors – If a lender obtains the necessary documents after filing the foreclosure, it may not have had standing at the time of filing. Ohio courts require standing from the very start.

These problems can be powerful foreclosure defenses for homeowners.

Talk to a Dayton, OH, Foreclosure Defense Lawyer Today 

Kohl & Cook Law Firm, LLC, represents the interests of homeowners who are facing foreclosure. Call our Dayton foreclosure defense lawyers today to schedule an appointment, and we can begin discussing your next steps right away.