PNMAC Mtge. Co., L.L.C. v. Sivula

Citation: 2012 Ohio 4939Docket: 98082

Court: Ohio Court of Appeals; October 25, 2012; Ohio; State Appellate Court

Original Court Document: View Document

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PNMAC Mortgage Co. LLC's appeal against the Cuyahoga County Court of Common Pleas' order, which denied its motion to amend the bid and confirm the sale of a foreclosed property in its name, was affirmed by the Court of Appeals of Ohio. The case arose after PNMAC filed for foreclosure against Michael and Kelly Sivula, resulting in a default judgment and a sheriff's sale scheduled for January 9, 2012. PNMAC assigned its bid to PennyMac Loan, which was confirmed by the court on January 19, 2012. Four days later, PNMAC sought to amend the sale confirmation, arguing that PennyMac, as a non-real estate trust under Ohio law, could not take title. The trial court stayed the confirmation but ultimately denied PNMAC's motion to confirm the sale in its name, stating that the appropriate remedy for addressing mistakes at a sheriff's sale is to vacate the sale and initiate a new one, as further assignments or changes in purchasers are not permitted under Ohio law. PNMAC’s subsequent motions were also denied, leading to the appeal.

After the bidding concludes, the purchaser is officially recorded, and the winning bid is accepted, leaving no other bids to be assigned. The successful bidder is obligated to pay for the property, and the court will not recognize any other entity as the buyer. The case draws a parallel to situations where a minor bids; the court does not allow a name change post-sale. Instead, Ohio law stipulates that the sale must be vacated and an alias sale ordered. PNMAC Mortgage appeals, claiming the court wrongly denied its motion to correct the bidder's form and confirm the sale under a different name. It argues that PennyMac Loan, not being a real estate or business trust, cannot hold title to the property, and the bid assignment is improper per Sheriff’s Office rules.

The review is conducted for an abuse of discretion, with references to relevant Ohio law (R.C. 2329.271) requiring specific purchaser information at execution sales. If the trial court finds compliance with the law during foreclosure proceedings, it may confirm the sale. Confirmation is treated as a special proceeding and becomes final unless vacated following the procedures of Civ.R. 60(B). Any party seeking to vacate a confirmed sale must demonstrate grounds such as mutual mistake or excusable neglect.

The sheriff’s sale was scheduled for January 9, 2012, during which PNMAC Mortgage assigned its bid to PennyMac Loan. On January 19, 2012, the trial court confirmed the sale, ordering the deed to be delivered to PennyMac Loan, marking the conclusion of the bidding process. Four days later, PNMAC Mortgage filed motions to stay the confirmation and amend the purchaser’s designation, despite the bid being closed and confirmed. The trial court determined that the appropriate remedy for any defects would be to vacate the sale and conduct a new one, thus denying PNMAC Mortgage's motion to amend the bid. Consequently, PNMAC Mortgage's appeal, which sought relief from the ruling overruling the amendment rather than the confirmation order, was deemed without merit. The judgment was affirmed, with costs taxed to the appellant. The court found reasonable grounds for the appeal and mandated execution of the judgment.