National City Mortgage Company v. Richards: A case study in condition precedent as a foreclosure defense

National City Mortgage Company v. Richards: A case study in condition precedent as a foreclosure defense

National City Mortgage Company v. Richards: A case study in condition precedent as a foreclosure defense[1]

Before your mortgage company can initiate foreclosure proceedings and accelerate your debt they must meet any condition precedents required in the original agreement.  Most often these condition precedents come in the form of required prior notice of default and/or acceleration outlined by a provision in your note or mortgage instrument.  So what does this mean for you?  Basically it means that your mortgage company cannot take action against you without properly informing you of their intent to do so.  National City Mortgage Company v. Richards[2] illustrates the scenario well.  In that case, Richards argued that she never received notice of her default through first class mail as was required in her original agreement with the mortgage company.  Because of this oversight on the part of the mortgage company, Richards never had a reasonable opportunity to cure the problem.  The Tenth District sided with Richards and the Mortgage Company’s cause was dismissed.  If you believe you might have an issue with condition precedent or any other mortgage issue please do not hesitate to contact Doucet & Associates.

[1] By: Justin Potter, Of Counsel, Doucet & Associates Co., L.P.A.

[2] Nat’l City Mortgage Co. v. Richards, 2009-Ohio-2556, ¶ 1, 182 Ohio App. 3d 534

 

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