Appeals Court Expands Ohio Statute of Limitations Decision

first_imgHome / Daily Dose / Appeals Court Expands Ohio Statute of Limitations Decision Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Print Features Data Provider Black Knight to Acquire Top of Mind 2 days ago Editor’s note: This story was originally featured in the January issue of DS News, out now.Recently, the Ohio Eighth District Court of Appeals expanded upon the Ohio Supreme Court’s Holden decision. In Holden, the court had determined that a foreclosure plaintiff is not barred from enforcing its mortgage interest against the property when the borrower’s personal obligation to pay the mortgage loan has been discharged in bankruptcy. According to the Eighth District, Holden applies to permit the foreclosure plaintiff to enforce its mortgage interest even if the plaintiff is barred from enforcing the promissory note because the statute of limitations has expired.The facts of the Walker case at hand are a common set. The borrower has defaulted on the promissory note, but through a series of circumstances, the matter was not referred for foreclosure until after the six-year statute of limitations governing negotiable instruments has expired. These facts beg the question: Can the mortgagee pursue foreclosure even after the statute of limitations for enforcing the borrower’s obligation to pay the note expires? The Walker case answers the question in the affirmative. The Eighth District has applied the longer statutes of limitations governing contracts in writing and actions against real estate to permit mortgagees to recover on the mortgage instead of the promissory note.Under Ohio law, the statute of limitations governing negotiable instruments is six years from the acceleration date. Accordingly while a party may be entitled to enforce a promissory note, it may not be entitled to obtain a judgment on the note because the six-year statute of limitations has expired. Notwithstanding this conclusion, the mortgagee may still have the right to pursue an ejection action or foreclosure because actions on the mortgage are governed by longer statutes of limitations under Ohio law.As a result, the Ohio courts have provided a means by which mortgagees can enforce otherwise time-barred mortgage loan defaults. While this approach denies the mortgagee a personal judgment against the borrower, it solves the larger problem of permitting the mortgagee to liquidate the mortgaged property under many circumstances.You can read more legal updates in the January 2018 Black Book issue of DS News, out now. Previous: Diversity Council Drives Progress With Leadership From Fannie Mae Next: Massachusetts Supreme Court Ruling Clarifies Foreclosure Rights Sign up for DS News Daily Tagged with: Eighth District Court of Appeals Foreclosure Ohio Ohio Supreme Court time period Walden Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Share Save Demand Propels Home Prices Upward 2 days ago Appeals Court Expands Ohio Statute of Limitations Decisioncenter_img Eighth District Court of Appeals Foreclosure Ohio Ohio Supreme Court time period Walden 2018-01-30 Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago January 30, 2018 5,058 Views Servicers Navigate the Post-Pandemic World 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Subscribelast_img read more

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