Mr. Roper has repeated shown that Quiet Title actions are almost always useless debt elimination scams promoted by swindlers. But Mr. Roper's many thoughtful posts show that occasionally a really sharp defendant who understands the Rules can prevail.
There is a fascinating new appellate decision out of Ohio today in which a homeowner seems to have mostly gotten the better of Chase in a foreclosure by a homeowners association. The case is:
Lexington Ridge Homeowners' Assn. v. Schlueter, No. 10CAA0087-M, 2013-Ohio-1601 (Ohio App. 9th Dist. April 22, 2013)
There is an interesting fact pattern. The homeowners association brought suit to foreclose on its lien for unpaid homeowners association dues. Chase was named and served as a defendant along with the owners and other lien holders.
When Case failed to answer, the home owners assigned their interest in the property to a trust, which trust was later named as a defendant.
Ultimately, the homeowner reached a settlement with the association agreeing to the foreclosure. Since the original complaint had sought a marshaling of all liens and a sale of the property, when presented with an agreed order, the court ordered the sale of the property with the proceeds divided amongst the lienholders actually establishing claims as well as the owners (the trust). Since Chase had NOT established its lien and had defaulted, its lien was extinguished!
This left Chase with a promissory note enforceable against Robert and Sandra Schlueter, but no further interest in the property. (The unsecured debt could be extinguished through a bankruptcy filing.)
Admittedly, this is a result that is probably not readily replicable in most cases. It certainly would never pay to employ the scam artists to try to shape such an outcome. Success depends upon the bank defaulting in a suit brought by another lienholder. Deeding the interest to the trust is a nice trick, though its effectiveness is probably dependent upon the precise provisions of the trust indenture or declaration.