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,,1752'8&7,21 ,,%$&.*5281' A. The Interplay Between Standing and Real Party in Interest ...... B. The Interplay Between Subject Matter Jurisdiction and Void Versus Voidable Judgments ...... C. Bona Fide Purchaser Terminology ...... D. The District Split in Curing Standing Issues ...... E. Residential Housing Market Crash Background ...... F. 6FKZDUW]ZDOG Background ...... G. The Ohio Supreme Court’s Inconsistent Application of Real Party in Interest and Standing ...... ,,,$1$/<6,6 A. The 6FKZDUW]ZDOG decision affects the major industries involved in and party to foreclosure actions...... 7KHSchwartzwaldGHFLVLRQZLOOUHTXLUHWKHPRUWJDJH OHQGLQJLQGXVWU\WRUHVWUXFWXUHLWVSUDFWLFHVDQGZLOOOHDG WRDQLQFUHDVHLQSUREOHPVVXFKDVEDQNZDONDZD\V 7LWOHLQVXUDQFHFRPSDQLHVXVHGWRKDYHPRUHLQFOXVLYH LQVXUDQFHIRUKRPHEX\HUVEXWLQOLJKWRISchwartzwald WKHUHZLOOEHJDSVLQFRYHUDJH B. The 6FKZDUW]ZDOG decision will affect the chain of title for potentially anyone who has purchased a foreclosure in Ohio or anyone who has purchased a home that has been previously foreclosed...... 7KHDXWKRULVDVWXGHQWDWWKH8QLYHUVLW\RI'D\WRQ6FKRRORI/DZZLWKDQXQGHUJUDGXDWHGHJUHH %$(QJOLVK IURP:ULJKW6WDWH8QLYHUVLW\DQGLVDOLIHORQJUHVLGHQWRIWKH'D\WRQDUHD6DP ZRXOGOLNHWRWKDQN-HIIUH\*DPPHOOIRUKLVZLOOLQJQHVVWRSDUWLFLSDWHLQDQLQWHUYLHZIRUZLWKRXWWKH LQIRUPDWLRQ SURYLGHG WKHUHLQ QHLWKHU WKLV&RPPHQW QRU 6DP¶VXQGHUVWDQGLQJ RI WLWOH LQVXUDQFH ZRXOG KDYHEHHQQHDUO\DVFOHDU6DPDOVRRZHVDWUHPHQGRXVWKDQN\RXWRKLV³WULRRISURSHUW\SURIHVVRUV´ 6DPWKDQNV3URIHVVRU7UDF\5HLOO\KLV5HDO3URSHUW\,SURIHVVRUIRUKHUFRQWLQXRXVHQFRXUDJHPHQWDQG PHQWRUVKLSWKURXJKRXWWKHDXWKRU¶VODZVFKRROFDUHHUDQGIRUOD\LQJDPRVWEULOOLDQWIRXQGDWLRQLQUHDO SURSHUW\ODZ6DPWKDQNV3URIHVVRU %ODNH:DWVRQKLV5HDO3URSHUW\ ,, SURIHVVRUIRUDVNLQJWKHKDUG TXHVWLRQVDQGSOD\LQJWKHGHYLO¶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chwartzwald C. The effects of the 6FKZDUW]ZDOG decision extend to the courts and the foreclosed upon parties in a way that has some considerable social policy impacts...... 7KHKROGLQJFUHDWHVLQHIILFLHQFLHVIRUWKHFRXUWV 7KHKROGLQJDOVRGLVUHJDUGVWKHIDFWWKDWIRUHFORVHGXSRQ SDUWLHVDUHQRZJUDQWHGD³JLIW´IRUWKHLUIDLOXUHWRSD\RQD PRUWJDJHGXHWRDODFNRIVWDQGLQJZKLFKGRHVQRWFKDQJH WKHGHIDXOWFRPPLWWHGE\WKHIRUHFORVHGXSRQSDUW\ D. There are at least two alternative holdings that would have made more legal sense and had more limited and less drastic effects as it relates to innocent third parties...... 7KHGHFLVLRQWRFRQVLGHUDODFNRIVWDQGLQJLVVXHHTXDOWRD VXEMHFWPDWWHUMXULVGLFWLRQLVVXHLVGLVSXWHGE\RWKHU2KLR GHFLVLRQV $OWHUQDWLYHO\LIWKHUHLVVXIILFLHQWVXSSRUWLQ2KLRODZIRUWKH GHFLVLRQDVLWUHODWHVWRVWDQGLQJDQGVXEMHFWPDWWHU MXULVGLFWLRQWKH&RXUWGLGQRWJRIDUHQRXJKLQLWVGHFLVLRQ OHDYLQJERQDILGHSXUFKDVHUVLQDSRVLWLRQZKHUHWKH\DUHQR ORQJHUWUHDWHGDVERQDILGHSXUFKDVHUVDVLWUHODWHVWR IRUHFORVXUHSXUFKDVHVDQGWKHGHWDLOVUHODWLQJWRWKHP E. On the Horizon: Cases Coming Down the Pike from the Ohio Supreme Court that Could Fix the 6FKZDUW]ZDOG “Unforeclosure” Issue ...... ,9&21&/86,21
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