Final order in mortgage foreclosure action bars all claims against the mortgagee, even a…

In Taylor v. Bayview Loan Servicing, LLC, 2019 IL App (1st) 172652 (July 25, 2019), the Plaintiffs brought an action against the lender who foreclosed a mortgage on their home in a prior proceeding. Plaintiff’s contended the foreclosure was wrongful and the lender had committed fraud upon the court. For…

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Illinois court rejects mortgagor’s attempt to thwart foreclosure by claiming a sham LLC he…

In an “ignoble attempt to discredit the foreclosure judgment” the mortgagor in U.S. Bank, Nat’l Ass’n as Tr. for Credit Suisse First Bos. CSFB 2005-11 v. Laskowski, 2019 IL App (1st) 181627 (July 16, 2019), belatedly sought to avoid the foreclosure by attacking the decree on behalf of an LLC…

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Neither attorney-client privilege nor the rules of professional conduct shield the identity of a…

An Illinois Appellate Court recently held that Neither the attorney-client privilege nor the rules of professional conduct shield the identity of a lawyer’s third-party client. Thus, in a citation proceeding the lawyer must disclose the identity of the person who retained the lawyer to represent the debtors. In Margules v.…

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Florida Appellate Court holds that lender does not have to send new notice of…

In HSBC Bank USA, N.A. as Tr. for Registered Holders of Renaissance Equity Loan Asset-Backed Certificates, Series 2007-3 v. Leone, No. 2D17-2851 (Fla. Dist. Ct. App. May 3, 2019) a Florida Appellate Court reversed a trail court ruling that because the lenders first foreclosure was voluntarily dismissed it had to…

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Even though foreclosure accelerates debt Eleventh Circuit holds it is not inaccurate to report…

In Hunt v. JPMorgan Chase Bank, Nat’l Ass’n, No. 18-11306 (11th Cir. Apr. 25, 2019) a consumer filed a class action suit alleging that his lender violated the Fair Credit Reporting Act by reporting him late even after the lender had commenced foreclosure proceedings. He also contended that after he…

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Illinois court holds that tender of amount sought before class certification motion moots claim

The Illinois Supreme Court recently allowed an appeal from an order finding that the tender to the plaintiffs of the requested relief before a motion for class certification is made served to moot the plaintiffs’ claims. In Joiner v. SVM Mgmt., LLC, 2019 IL App (1st) 172336-U (Feb. 14, 2019)…

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Seventh Circuit affirms reduction of fee petition on FDCPA verdict from $187,410 to $10,875

The Seventh Circuit observed in Paz v. Portfolio Recovery Assocs., LLC, No. 17-3259 (7th Cir. May 15, 2019) that “[s]ometimes settling a case is the only course that makes sense”. It affirmed a district’s reduction of a debtor’s fee petition on an FDCPA verdict from $187,410 to $10,875 concluding the…

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Illinois appellate court holds refinancing lender entitled to conventional subrogation even where the proceeds…

In Wilmington Savings Fund Society, FSB v. Zarkhin, 2019 IL App (2d) 180439 (March 26, 2019) the Plaintiff filed a foreclosure on property owned by mortgagors, alleging in part that its mortgage, although recorded later, had priority over the defendants’ mortgage because it was intended and used to pay off…

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Eleventh Circuit hands servicer big loss in FCRA case

On March 25, 2019 the Eleventh Circuit in Marchisio v. Carrington Mortgage Services, LLC, 919 F.3d 1288 (11th Cir. 2019) affirmed a ruling that a servicer failed to conduct a reasonable investigation of the Plaintiffs’ challenge of its report that they owed a balloon payment on their second mortgage loan,…

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Supreme Court answers whether attorneys engaged in non-judicial foreclosure are not debt collectors for…

The facts of Obduskey v. McCarthy & Holthus LLP, No. 17-1307 (U.S. Mar. 20, 2019) are straight-forward. The defendant lawyers were hired to carry out a nonjudicial foreclosure on a Colorado home owned by the petitioner. The lawyers sent a debt validation notice to the petitioner who disputed the debt.…

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