Illinois Appellate Court holds there is no equitable mortgage without a written instrument

In Edward F. Paliatka v. Bush, et al., 2018 IL App (1st) 172435 (July 18, 2018) the Illinois Appellate Court affirmed the trial court’s order dismissing the mortgagee’s action to foreclose an equitable mortgage. The court held that an equitable mortgage does not exist without there being a written instrument.…

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Property inspector retained by mortgage servicer is not a debt collector and the door…

In Schlaf v. Safeguard Prop., LLC, No. 17-2811 (7th Cir. Aug. 10, 2018) the Seventh Circuit held that the company contracted by the mortgage servicer to perform occupancy inspections of mortgaged property was not a debt collector and the door hanger it left at the property was not an attempt…

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Seventh Circuit holds that debtor’s settlement with creditor moots FDCPA claim against creditor’s law…

In Portalatin v. Blatt, Hasenmiller, Leibsker & Moore, LLC, No. 16-1578 (7th Cir. Aug. 13, 2018), an FDCPA action, the Seventh Circuit vacated a judgment based on a jury verdict of $200 in statutory damages and over $70,000 in fees and costs against a law firm. The Court held that…

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Third Circuit holds that bad debt buyer deemed “debt collector” under the FDCPA

The Third Circuit in Tepper v. Amos Financial LLC, No. 17-2851 (3d Cir. Aug. 7, 2018) has extended the reach of the FDCPA’s definition of debt collector to include entities whose principal business is to collect the defaulted debts they purchase. The debtors had a home equity line of credit…

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Illinois Appellate Court holds condominium association not required to file lawsuit against prior owner…

In Sylva, LLC v. Baldwin Court Condominium Association, Inc., 2018 IL App (1st) 170520, a purchaser bought a condominium unit at a foreclosure sale. At the time of sale, the purchaser paid six months’ of the prior owner’s unpaid assessments to clear the title of the unpaid assessment lien. After…

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Illinois passes legislation ratifying the validity of foreclosure judgments where there was a defect…

Two pieces of legislation recent passed the both houses of the Illinois General Assembly that affect foreclosure and mortgage related litigation. Both are awaiting the signature of the governor. The first bill, SB2432, was clearly directed at redressing the consequences of the 2015 decision of Arch Bay Holdings, LLC-Series 2010B…

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Congress Grants Regulatory Relief to Retail Manufactured Home Sellers

On May 24, 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act (“Act”), S. 2155, which was passed by Congress on May 22, 2018, was signed into law. The Act represents the first major rewrite of the financial regulations legislated under the Dodd–Frank Wall Street Reform and Consumer Protection…

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Indiana district court holds debt collection attorney violated FDCPA by serving Request to Admit…

In Patterson v. Howe, Case No. 1:16-cv-03364, (S. D. Ind. Mar. 30, 2018) the district court for the Southern District of Indian found that a debt collector violated the FDCPA when it served the debtor with a “Requests to Admit”, along with the summons and the complaint, which basically asked…

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Eleventh Circuit says attorney violates BAPCA by encouraging debtor to pay attorney fee by…

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, (“Act”) amended federal law to impose new requirements on professionals who assist with the preparation of bankruptcy petitions. The provision at issue in a recent decision from the Eleventh Circuit, Cadwell v. Kaufman, Englett & Lynd, PLLC, 886 F.3d 1153…

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Cash collateral order in bankruptcy constitutes “constructive possession” of property sufficient to allow mortgagee…

Addressed in U.S. Bank Nat’l Ass’n v. Randhurst Crossing LLC, 2018 IL App (1st) 170348 (Mar. 29, 2018) was whether a mortgagee holding an assignment of rents was entitled to collect rents before a receiver was appointed on the basis that a bankruptcy court had previously ordered that the rents…

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