Homeowner improperly foreclosed upon loses "third strike."
Like many others, Donald Bond admitted he was in default on his mortgage. Nevertheless, when U.S. Bank commenced foreclosure on his property, it did not even have a legal interest in Bond's mortgage. It acquired an interest on October 13 of 2008, but had sued for foreclosure in District Court in September of 2008. Bond fought the Bank's eviction action, claiming that the bank lacked the legal right to pursue foreclosure, however, the trial judge mistakenly ruled that the mortgagee's interest in the property was not a proper defense to an eviction action.
Bond did not appeal that result, but instead brought a separate action to enforce his legal rights. Unfortunately, the court in the later action ruled that under existing law the decision in the eviction action determined Bond's rights and he could not "re-litigate" the issue. Even though the prior decision was mistaken, his rights were foreclosed by his failure to appeal that ruling.