News

The Protecting Tenants at Foreclosure Act

by Lee Cuilli Lee Cuilli

A federal law was recently passed which significantly impacts a lender’s right to take possession of tenant occupied property bought at foreclosure sale. This law is known as the Protecting Tenants at Foreclosure Act and became effective upon its enactment on May 20, 2009. This law applies to tenant occupied property that is bought by a lender who has foreclosed a “federally related mortgage loan” as defined in the Real Estate Settlement Procedures Act of 1974 (“RESPA”).

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Cuyahoga County Adopts the “Standing Rule”

by Dean Kanellis Dean Kanellis

The Standing Rule is Raised in Federal Court

In early 2007, in a group of foreclosure cases that had been filed in Federal Court, Judge Timothy Boyko issued an opinion in which he stated that if a lender cannot prove that it owned the note and mortgage on the date the complaint was filed, the lender’s case must be dismissed. The Judge reasoned that under such circumstances, the lender lacks standing to invoke the jurisdiction of the Federal Courts. While the Standing Rule announced by Judge Boyko appeared to be limited to foreclosure cases that had been initiated in Federal District Court, judging by the mood of the economy, we predicted that his reasoning would soon find its way into state court proceedings.

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