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Foreclosure thrown out on appeal for lack of standing

Foreclosure litigation can be complex and confusing for both sides. At times, it can be tough to tell what entity has the right to sue a homeowner. As with any legal action, standing matters. A person or organization that has not been injured by the defendant does not have the right to sue, and their claim should be dismissed.

A court of appeals outside of Florida recently threw out a foreclosure against a homeowner based on this lack of standing. The panel of judges ruled that Aurora Loan Services LLC kept changing its story about its relationship to the property, in an attempt to convince the court it had standing to foreclose on the house.

According to Daily Business Review, Aurora first sued the homeowner in August 2008. At that time, the company said it owned the property's lost note. It later twice revised the foreclosure complaint, identifying itself variously as the owner of the note (which was no longer lost, apparently) or the servicer of the loan for Deutsche Bank. Aurora's sole evidence of this third claim was a single witness and a screen shot of a scanned copy of the note.

The trial court granted foreclosure, but the homeowner appealed. The appellate court reversed the judgment and remanded for dismissal. The panel of judges ruled that Aurora had failed to show it had standing to seek foreclosure on the home.

Discovering that the wrong party is trying to foreclose on you can get the case dismissed, allowing you to keep your home, at least for a while longer.

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