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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Illinois federal court finds collection letter listing interest and other charges as $0 is…

The debtor in Delgado v. Client Servs., Inc., No. 17 C 4364 (N.D. Ill. Mar. 7, 2018) sued the debt collector under the FDCPA by sending a misleading letter regarding a dunning letter that reference the balance due at charge-off “2,619.26”, interest at “0.00”, other charges at “0”, payments made…

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Ninth Circuit says receipt containing credit card’s full expiration date violates FCRA but is…

In Bassett v. ABM Parking Services, Inc., 883 F.3d 776 (Feb. 21, 2018), the United States Court of Appeals for the Ninth Circuit held that a consumer who received a credit card receipt that improperly contained the full expiration date in violation the Fair Credit Reporting Act (“FCRA”) failed to…

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Sixth Circuit holds Article III jurisdiction lacking for claims under the FDCPA where no…

In Hagy v. Demers & Adams, No. 17-3696, 882 F.3d 616 (Feb. 16, 2018), two borrowers took out a loan for a mobile home on which they subsequently defaulted, prompting the lender to foreclose. The parties resolved the case through a deed in lieu and the lender dismissed the foreclosure.…

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Entry of “cash collateral” order in bankruptcy constitutes “constructive possession” of the property sufficient…

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

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