Bayview Loan Servicing, LLC v. Starks

2022 IL App (2d) 210056, 206 N.E.3d 347, 462 Ill. Dec. 166
CourtAppellate Court of Illinois
DecidedMay 5, 2022
Docket2-21-0056
StatusPublished
Cited by8 cases

This text of 2022 IL App (2d) 210056 (Bayview Loan Servicing, LLC v. Starks) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bayview Loan Servicing, LLC v. Starks, 2022 IL App (2d) 210056, 206 N.E.3d 347, 462 Ill. Dec. 166 (Ill. Ct. App. 2022).

Opinion

2022 IL App (2d) 210056 No. 2-21-0056 Opinion filed May 5, 2022 ______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT ______________________________________________________________________________

BAYVIEW LOAN SERVICING, LLC, ) Appeal from the Circuit Court ) of Lake County. Plaintiff-Appellee, ) ) v. ) No. 18-CH-845 ) ELIZABETH R. STARKS, Individually and as ) Trustee of the Starks Revocable Living Trust, ) Dated May 10, 2016; EVERGREEN BANK ) GROUP, f/k/a Evergreen Private Bank; ) DISCOVER BANK; THE STARKS ) REVOCABLE LIVING TRUST, Dated May ) 10, 2016; UNKNOWN OWNERS; and NON ) RECORD CLAIMANTS, ) ) Defendants ) Honorable ) Charles D. Johnson, (Elizabeth R. Starks, Defendant-Appellant). ) Judge, Presiding. ______________________________________________________________________________

JUSTICE BRENNAN delivered the judgment of the court, with opinion. Justices McLaren and Hudson concurred in the judgment and opinion.

OPINION

¶1 Defendant Elizabeth R. Starks defaulted on her mortgage, and the trial court entered an

order of default and a judgment of foreclosure in favor of plaintiff, Bayview Loan Servicing, LLC

(Bayview). Starks filed motions seeking to vacate the default judgment and for leave to file an

untimely answer and counterclaims. The trial court denied those motions, as well as Starks’s

motion to reconsider. For the following reasons, we affirm. 2022 IL App (2d) 210056

¶2 I. BACKGROUND

¶3 Starks purchased a home secured by a mortgage. Bayview subsequently obtained the

interest in the mortgage. According to her proposed countercomplaint, Starks obtained Chapter 7

bankruptcy protection in June 2018 and her debts were discharged. Bayview filed a complaint for

foreclosure in July 2018, alleging Starks’s default.

¶4 On July 19, 2019, the trial court entered an order continuing the case to July 17, 2020, “for

Special Progress Call,” citing “Pursuing Loan Modification” as the status of the case. One week

later, on July 26, 2019, the trial court entered an order continuing the case to October 25, 2019,

“for status.” On October 25, 2019, the trial court entered an order continuing the case to February

7, 2020, “for status.” That date was subsequently changed to February 14, 2020.

¶5 On February 14, 2020, the trial court entered an order of default and a judgment of

foreclosure. The court noted that the redemption period would expire on May 14, 2020, and

ordered the sale of Starks’s home if amounts due and owing to Bayview were not paid by that date.

On July 24, 2020, the trial court entered an order continuing the case to July 23, 2021, citing

“Other: GSE moratorium hold” as the status of the case. On November 17, 2020, however, Starks’s

home was sold at a judicial sale.

¶6 On December 29, 2020, Starks filed an emergency motion seeking to vacate the order of

default (735 ILCS 5/2-1301(e) (West 2020)), to set aside the judicial sale, and leave to file an

answer and counterclaims. In the motion, Starks acknowledged that her statutory rights of

redemption had expired, the home had been sold at auction, and the sale was set for confirmation

on January 15, 2021. In the proposed answer, Starks alleged that Bayview was not the legal holder

of the mortgage and thus had no right to foreclose. In the proposed countercomplaint, Starks

alleged that, on or about July 16 or 17, 2020, agents of Bayview forcefully entered Starks’s home

-2- 2022 IL App (2d) 210056

without legal right to do so and took personal items valued at over $1000 as well as items of

personal sentimental value. Starks, with the help of counsel, was also negotiating with Bayview to

obtain a deed-in-lieu of foreclosure. The proposed countercomplaint included counts alleging

consumer fraud in the course of foreclosing on Starks’s home, trespass to real property, trespass

to chattels, conversion, invasion of privacy, breach of the mortgage contract, and unfair debt

collection practices in connection with the efforts at recouping money owed under the mortgage

contract. Starks sought to recover actual damages, statutory damages, and reasonable attorney fees.

¶7 On January 7, 2021, the trial court entered an order denying both the motion to vacate the

foreclosure judgment and leave to file an answer and counterclaims. The order further stated, “This

ruling is without prejudice as to Defendant filing any separate claims that she may seek to file and

does not operate as a bar to any such filings.” On the same day, Bayview filed a motion for an

order approving the sale.

¶8 On January 14, 2021, Starks filed an emergency motion to reconsider the trial court’s

January 7, 2021, order. Starks noted that this court’s opinion in Adler v. Bayview Loan Servicing,

LLC, 2020 IL App (2d) 191019, had been filed on the same day as her December 29, 2020, motion.

Starks argued that, in light of Adler, denying her leave to file counterclaims would forever bar her

from litigating those claims. She further argued,

“[Starks’s] delay in bringing forth her claims is attributable, at least in part: due to the

Plaintiff’s slow walking of her mitigation efforts in her attempt to enter into a deed in lieu

of foreclosure. Moreover, part of the delay of the filing of [Starks’s] motion was the result

of the investigatory steps her counsels undertook to properly identify the [sic] both the

claims and defendants and entities responsible for the action alleged in her complaint.

-3- 2022 IL App (2d) 210056

Furthermore, it was not always clear that her claims would necessarily have to be filed in

the instant foreclosure action instead of an independent claim as the Adler court has held.”

Starks added that, “in order to preserve her right to hold the culpable parties accountable, [she]

must be given an opportunity to prosecute those claims in the instant action.” (Emphasis added.)

The trial court denied the motion to reconsider and entered an order confirming the sale.

¶9 Starks timely appealed. In lieu of a report of proceedings, the parties filed an agreed

statement of facts, pursuant to Illinois Supreme Court Rule 323(d) (eff. July 1, 2017). They state:

“1. On July 17, 2018, a Complaint to Foreclose Mortgage was filed by Plaintiff

BAYVIEW LOAN SERVICING, LLC, against Defendant ELIZABETH R. STARKS, and

other parties.

2. On February 14, 2020, the trial court entered default judgment for foreclosure

and sale.

3. On December 29, 2020, Ms. Starks, through counsel, filed her Motion to Vacate

Non-Final Order requesting that the trial court vacate the default judgment, set-aside the

judicial sale, stay any confirmation hearings, and grant her leave to file her proposed

answer, counterclaims, and third-party claims.

4. Specifically, Ms. Starks sought to bring counter-claims against Plaintiff

Community Loan Servicing, LLC f/k/a Bayview Loan Servicing, LLC, and other parties,

related to alleged violations of the Fair Debt Collection Practices Act, the Illinois

Consumer Fraud and Deceptive Business Practices Act, Trespass to Real Property and

Chattels, Conversion, Invasion of Privacy and Breach of Contract.

-4- 2022 IL App (2d) 210056

5. The Counter-Claims were brought not only against Community Loan Servicing,

LLC f/k/a Bayview Loan Servicing, LLC but also Mortgage Contracting Services, LLC,

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2022 IL App (2d) 210056, 206 N.E.3d 347, 462 Ill. Dec. 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bayview-loan-servicing-llc-v-starks-illappct-2022.