U.S. Bank Natl. Assn. v. Lawson

2023 Ohio 1517
CourtOhio Court of Appeals
DecidedMay 5, 2023
Docket29594
StatusPublished

This text of 2023 Ohio 1517 (U.S. Bank Natl. Assn. v. Lawson) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Bank Natl. Assn. v. Lawson, 2023 Ohio 1517 (Ohio Ct. App. 2023).

Opinion

[Cite as U.S. Bank Natl. Assn. v. Lawson, 2023-Ohio-1517.]

IN THE COURT OF APPEALS OF OHIO SECOND APPELLATE DISTRICT MONTGOMERY COUNTY

U.S. BANK NATIONAL ASSOCIATION : : Appellees : C.A. No. 29594 : v. : Trial Court Case No. 2019 CV 00392 : CINDY M. LAWSON, ET AL. : (Civil Appeal from Common Pleas : Court) Appellant : :

...........

OPINION

Rendered on May 5, 2023

MATTHEW J. RICHARDSON, Attorney for Appellee

CINDY M. LAWSON, Pro Se Appellant

.............

EPLEY, J.

{¶ 1} Cindy M. Lawson appeals from a judgment of the Montgomery County Court

of Common Pleas, which confirmed the sale of her foreclosed property. For the following

reasons, the trial court’s judgment will be affirmed.

I. Facts and Procedural History

{¶ 2} Lawson was the owner of the residential property located at 5746 De Soto -2-

Street. To purchase the home, Lawson borrowed $90,824 from Caliber Home Loans,

Inc. She signed a note in that amount and executed a mortgage to secure payment.

Caliber subsequently transferred its interest to U.S. Bank National Association.

{¶ 3} Lawson defaulted on her obligations under the note and mortgage. Her

personal obligation on the loan was discharged in bankruptcy. On January 24, 2019,

U.S. Bank filed an in rem proceeding, seeking to enforce its security interest. The bank

asked for foreclosure of the property and a finding of default on the note in the principal

amount of $85,566.63, plus interest, late charges, advances, costs and expenses.

{¶ 4} Lawson was served with the complaint, but she did not file an answer. On

July 2, 2019, in response to a show cause order, the bank notified the trial court that it

was in the process of reviewing a loss mitigation appeal request from Lawson, that the

subject property was in a FEMA-declared disaster area with an expected moratorium end

date of September 16, 2019, and that it was unable to proceed until the moratorium was

lifted. The trial court stayed the proceedings. In late September, U.S. Bank requested

that the case be reactivated, because the parties “were unable to reach an agreement for

a foreclosure alternative to resolve the current dispute.” After the trial court again issued

a show cause order due to failure to prosecute, U.S. Bank indicated that it was reviewing

a loss mitigation application from Lawson.

{¶ 5} Ultimately, U.S. Bank moved for a default judgment, and on January 22,

2020, the trial court granted a judgment and decree of foreclosure. The court found that

the note and mortgage were in default and that the bank was owed a principal amount of

$85,566.63, plus interest on the principal amount at the rate of 4.375% per annum from -3-

May 1, 2018, and late charges and advancements. The court ordered the equity of

redemption be foreclosed and the property sold. Lawson did not appeal the trial court’s

judgment.

{¶ 6} On March 27, 2020, in response to the COVID-19 pandemic, the federal

government enacted the Coronavirus Aid Relief and Economic Security Act (CARES Act),

which included a moratorium on foreclosures and offered borrowers an opportunity to

temporarily suspend payment on their federally-backed or federally-owned mortgage

loans. Where foreclosure proceedings had already been initiated, the CARES Act

prevented lenders from seeking a foreclosure judgment or requesting a sale of the

property. The foreclosure moratorium was initially set to expire on May 31, 2020, but it

was extended several times and ultimately expired on July 31, 2021. It is unclear

whether the moratorium applied to Lawson’s mortgage loan.

{¶ 7} In April 2020, Lawson moved to stay the sheriff’s sale. The trial court

granted a stay of the sale through July 1, 2020. At that point, a sheriff’s sale was

scheduled for July 28, 2020. The July 2020 sale was cancelled, and no further action

was taken in the case until August 2021, more than a year later.

{¶ 8} On August 4, 2021, Lawson again sought a stay of the sale of her home,

citing ongoing medical issues and the COVID-19 pandemic. After the trial court denied

the motion, Lawson sought relief from the foreclosure judgment under Civ.R. 60(B). That

motion also was denied. Lawson did not appeal.

{¶ 9} The property was sold in a foreclosure auction in June 2022 for $131,300.

Lawson filed a motion to stay confirmation of the sheriff’s sale, arguing that she was -4-

pursuing loss mitigation and mortgage assistance with U.S. Bank and that the bank told

her that it would halt the sale while she pursued those processes. The trial court

overruled the motion. On August 22, 2022, the trial court confirmed the sale and ordered

distribution of the proceeds.

{¶ 10} Lawson appeals from the trial court’s judgment.

II. Confirmation of Sale

{¶ 11} Lawson, proceeding pro se, does not provide any assignments of error as

required by App.R. 16(A), but she challenges the foreclosure of the De Soto property and

its sale. She argues that the trial court failed to protect her civil liberties, civil rights, and

due process rights, and overreached when denying her motions. Lawson states that she

was granted rights for “loan modification consideration due to unemployment, living in a

disaster area in May 2019 (tornados), and a moratorium imposed by the government

related to a global pandemic.” She also asserts that U.S. Bank engaged in bad faith

negotiations and fraudulent conduct during the foreclosure and sale processes.

{¶ 12} In reply, U.S. Bank argues that Lawson’s arguments do not relate to the

confirmation of sale. It points out that any requested discovery would have occurred

after the trial court entered its judgment and decree of foreclosure, and the trial court did

not abuse its discretion in denying her motions when more than two years elapsed

between the foreclosure judgment and the sale of the property.

{¶ 13} Before turning to the issues Lawson raises, we begin with a brief

explanation of the two-step foreclosure process.

{¶ 14} The foreclosure process begins with a suit for foreclosure of the mortgage. -5-

This action “constitutes a proceeding for the legal determination of the existence of a

mortgage lien, the ascertainment of its extent, and the subjection to sale of the property

pledged for its satisfaction, and no more.” Wells Fargo Bank, N.A. v. Young, 2d Dist.

Darke No. 2009-CA-12, 2011-Ohio-122, ¶ 28, quoting Carr v. Home Owners Loan Corp.,

148 Ohio St. 533, 540, 76 N.E.2d 389 (1947). The final judgment in a foreclosure

proceeding “will determine the rights of all the parties in the premises sought to be

foreclosed upon.” Marion Prod. Credit Assn. v. Cochran, 40 Ohio St.3d 265, 270, 533

N.E.2d 325 (1988); U.S. Bank Natl. Assn. v. Conrad, 2018-Ohio-994, 108 N.E.3d 1156,

¶ 15 (2d Dist.). Upon the entry of a judgment of foreclosure, the trial court must order

the property to be sold. Conrad at ¶ 15, citing R.C. 2323.07. A judgment and decree of

foreclosure is a final appealable order. Id. at ¶ 14.

{¶ 15} The second part of the process involves the sale of the property, culminating

in a confirmation of sale and dispersal of the sale proceeds. Conrad at ¶ 14. “The

primary purpose and goal of a foreclosure sale is to protect the interests of the mortgagor-

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2023 Ohio 1517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-bank-natl-assn-v-lawson-ohioctapp-2023.