Record-Breaking Foreclosure Legal Suit

Posted on September 22, 2008
Filed Under Repo Homes |

The record-breaking foreclosure legal suit is the story of the perseverance of Richard Davet. It is a testimony to his belief and conviction about the house that is his home.

The story starts in 1996 when Davet was given a foreclosure notice on his house in Cuyahoga County, Ohio. It was a spacious house with six bedrooms. Richard Davet was not like others to accept fate and move on to a rented house. He decided to cross swords with NationsBanc Mortgage Corp. in court.

He turned the fight into a full time operation by going through books on law in the local library. He challenged the lawsuit and then overwhelmed the court with motions, objections and many affidavits. At every turn he appealed against the rulings of the judge. This won for him the bonus of living for eleven years free from mortgage payments in his own house.

Davet’s case and his unrelenting stand and relentless challenge caught the attention of the media. It got wide publicity in the national press. It is surmised that this case is the longest foreclosure case related to a residential property in Cuyahoga County. The county has been the centre of the foreclosure crisis that has been overwhelming Ohio as well as many regions of USA.

The point of interest is that the case brings up the question of the role of judiciary in the state as regards repo homes cases.

So far no one had questioned the fault of the borrower when he or she failed to keep mortgage payments. But lately the question has come up whether the plaintiff filing for foreclosure has the right to do so. Previously the mortgage holders were local banks. But with the entry of the sub-prime mortgages in the field with floating interest the complexion of lending changed. The mortgages were parceled and then sliced and sold often to clients abroad as securities. Servicers were appointed to collect the mortgage. But in the case of a dispute the latter claimed to have no right to negotiate. The court now began to question the bonafides of the plaintiff filing for foreclosure and whether that party had the title papers. This has put many lenders in a fix.

So far the borrowers were so psychologically cowered down that they humbly accepted the notices and surrendered to foreclosure. Davet has brought about a change in thinking and interpretation of the law.