Ohio Courts Take Action In Foreclosure Cases

After a lull in foreclosure action in the last three months, many housing experts expect the process to crank up again as lenders put forward changes in their paperwork policies.

But many homeowners are likely to fight their foreclosures, claiming lenders have abused the system with robo-signers and other steps to expedite the process. In Ohio, Attorney General Richard Cordray has requested that the state courts continue to pay close attention to foreclosure cases that may have affidavits signed by robo-signers.

Taking action

In support of continued vigilance, Cordray highlights several courts that have taken action to address the situation.

"In tracking these cases throughout the state, we have found that judges are finding different ways to handle them," said Cordray. "Judges from Cuyahoga to Trumbull to Butler Counties have all found ways to deal with affidavits that may be fraudulent. I strongly urge other courts to consider options that will work best for them as our office decides how to handle the individual cases."

• In Butler County, Ohio, Cordray says Judge Charles Pater issued an order denying GMAC's motion to ratify a judgment because "neither the Ohio Civil Rules nor the local rules of this court provide a procedure for or authorize a court to 'ratify' a final appealable order." The judge further stated that "the proper course of action would be for GMAC to first file a motion to set aside its judgment and then, once the court grants that motion, to refile its motion for summary judgment with a correctly executed affidavit in support."
• In Cuyahoga County, Ohio, Judge Nancy Russo has scheduled a hearing requiring a foreclosure plaintiff "to provide the court with proof of integrity of all documents submitted." Another judge, Cordray says, has issued an order in a foreclosure case requiring that foreclosure counsel "personally certify the authenticity and accuracy of all documents submitted in support of judgment."
• In Trumbull County, Ohio, a court sent a letter to foreclosure counsel requiring that affidavits state that the signatory "has personal knowledge of the file and has personally reviewed the documents."

Courts to the rescue

If courts are stepping in to help homeowners deal with foreclosure issues, it might offset the reduced help they are getting from the government, through official assistance programs. Officials in the Office of Thrift Supervision say fewer than a half million homeowners received help on their mortgages in the July-September quarter.

That's down about 17 percent from the second quarter and down 32 percent from the third quarter of 2009. Officials say the decline is due to a recent slowdown in foreclosures and a shrinking pool of homeowners who qualify for modification programs.