1. In Focht vs. Wells Fargo Bank, the Second District Court of Appeal upheld the precedent that a plaintiff in a foreclosure action must prove it had standing at the time it filed the foreclosure complaint in order to maintain the action.
2. Standing in the legal context is defined as having a legally protectable stake or interest in a dispute against another entity that allows a person to bring the controversy before the court for judicial relief.
3. A plaintiff-bank who is not the original mortgagee may establish standing to foreclose a mortgage loan by submitting a note with a blank or special endorsement, a valid assignment of the note, or an affidavit proving the plaintiff’s status as the holder of the note. 1. Wells Fargo did not have standing at the beginning of the lawsuit because it received a valid assignment nearly eight months after filing the foreclosure complaint.
2. Wells Fargo admitted that it did not have possession of the note when it filed the lawsuit, as it included a separate count to reestablish a lost note.
3. To establish standing, Wells Fargo needed to be in possession of the original note at the time it filed the lawsuit, which it was not based on its count to reestablish the lost note. 1. Many foreclosure judgments in Florida have been overturned due to plaintiff-banks being unable to prove standing at the beginning of the lawsuit, even if they later prove they had standing before the final hearing.
2. Financial institutions in Florida frequently struggle with proving standing in foreclosure cases due to the high volume of cases and poor record keeping.
3. The Florida Supreme Court has not definitively ruled on whether lack of standing at the inception of a foreclosure lawsuit can be cured if the plaintiff later proves they have standing before the final hearing.
4. The Florida Second DCA certified a question to the Florida Supreme Court asking whether a plaintiff in a foreclosure action can cure the inability to prove standing at the beginning of the suit by later proving they have acquired standing.
5. As of the date of the blog, the current rule in Florida is that a plaintiff in a foreclosure action must prove standing at the inception of the lawsuit in order to maintain and prevail in the case. However, the future of this rule depends on the Florida Supreme Court’s answer to the certified question.
https://www.jimersonfirm.com/blog/2013/10/floridas-second-dca-florida-law-remains-that-plaintiffs-in-foreclosure-actions-must-have-standing-at-the-time-of-filing-suit/
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