Nashville MMA big shot suing to save house

Monday, April 19, 2010 at 12:22am
Staff reports

Ed Clay, the city’s biggest promoter of mixed martial arts and owner of an MMA gym, is suing a lender for attempting to foreclose on his house.

According to the suit, filed Thursday in Davidson County Circuit Court, Clay claims that the company that served as lender on his Peach Orchard Drive house, which he bought in 2006, advised him to default on payments in order to trigger a refinancing process.

Instead, Clay claims in the suit, the lender — Aurora Loan Services, a subsidiary of now-bankrupt Lehman Brothers — began foreclosure proceedings. It plans to claim Clay’s house on April 22. But Clay is disputing that the company can even legally do so because it may not be the current owner.

The original lender — Dallas-based PrimeLending — sold the lien to Lehman Brothers, which transferred it to an in-house subsidiary before its well-documented bankruptcy in 2008. The lien eventually landed with Fannie Mae, the suit says.

He would not have defaulted were he not instructed to, Clay says in the suit.

Clay is asking for a temporary restraining order to keep Aurora from foreclosing on his house, as well as unspecified damages from the company. His attorney is arguing that the foreclosure violates the Tennessee Consumer Protection Act.

Neither Clay nor his attorney, Scott Collins, could be reached for comment as of this writing. Clay was the subject of a recent Nashville Scene cover story.

Some of the events in this case appear to be consistent with Lehman Brothers’ — and other Wall Street firms’ — behavior during the lead up to the subprime mortgage crisis, where mortgages and other loans were packaged and sold as single financial entities to other investors, virtually sight-unseen. 

1 Comment on this post:

By: govskeptic on 4/19/10 at 5:05

While his lawsuit might get relief and more time in many
other states, it probably won't happen here. Our
legislature has spent many yrs flushing out any hint
of consumer protection laws for the citizens. It's a
joke with a Title to lobbyist and legislators alike.