Current Case Alert Archives - Page 8 of 30

Illinois District Court holds that FDIC’s claims for fraudulent real estate transactions are limited…

The FDIC, acting as receiver for a failed bank, sued a title company and an appraiser in connection with four fraudulent real estate flip transactions. The title company moved for summary judgment seeking to limit the FDIC’s damages to the amount of the deficiency judgments that the bank obtained at…

Illinois Bankruptcy Court holds that a mortgagee is entitled to post-petition rents without taking…

In In Re Benanti, 15-71018 (Bankr. C.D. Ill. Oct. 26, 2015) the U.S. Bankruptcy Court for the Central District of Illinois held that a mortgagee was entitled to post-petition rents over the Chapter 7 Trustee’s objection, even though it had not taken possession of the property because rents are cash…

Alabama Bankruptcy Court holds that filing a proof of claim based on a time-barred…

In Jenkins v. Midland Credit Management, Inc., 14-40226-JJR13, AP No. 14-40040-JJR (Bankr. N.D. Ala. Sept. 17, 2015) the U.S. Bankruptcy Court for the Northern District of Alabama held that filing a proof of claim based on a time-barred debt does not violate the FDCPA. The decision appears at odds with…

Illinois Supreme Court holds that land trust is a consumer for purposes of TILA

The Illinois Supreme Court in Financial Freedom Acquisition, LLC v. Standard Bank & Trust Co., No. 117950 (Sept,. 24, 2015) reversed a decision of the appellate court holding that an Illinois land trust had no right to rescind a mortgage transaction under TILA. The trial and appellate courts held a…

Illinois appellate court affirms that improperly submitted judgment figures will not be a factor…

In BMO Harris Bank v. Wolverine Properties, 2015 IL App (2d) 140921(August 2015) the mortgagee screwed up when it failed to include the amount it paid to redeem taxes in its foreclosure judgment amount. The mortgagee later sought to recover the payment against the mortgagors and guarantors at the confirmation…

New Hampshire District Court holds that a mortgagor, who is not indebted on the…

On August 11, 2015 the U.S. District Court for the District of New Hampshire in Sharp v. Deutsche Bank National Trust Company, No. 14-cv-369 (D.N.H. Aug. 11, 2015) rejected the Plaintiff’s request to amend his complaint to add a count alleging a violation of RESPA based on its inadequate responses…

Seventh Circuit holds that under Illinois law mortgagee’s prior dismissals of actions on the…

The mortgagee in United Cent. Bank v. KMWC 845, LLC, No. 14-1491 (7th Cir. Aug. 28, 2015) brought a mortgage foreclosure action in Wisconsin federal court to foreclose three mortgages on various Wisconsin properties. The first mortgage, encumbering four properties, originally had a choice of law provision selecting Wisconsin law,…

Mortgagee not escrowee of insurance proceeds but homeowner stated breach of contract action where…

After the mortgaged property in Avila v. CitiMortgage, Inc., No. 14-1949 (7th Cir. Sept. 4, 2015) was damaged by fire, and the mortgagee received insurance proceeds, it paid some the money to the homeowner to get the restoration underway. It later inspected the work and found it needed to be…

Mortgagee barred from foreclosing where it had previously filed but dismissed actions on the…

The mortgagee in United Central Bank v. KMWC 845, LLC, No. 14-1491 (7th Cir. Aug. 28, 2015) brought a mortgage foreclosure action in Wisconsin federal court to foreclose three mortgages on various Wisconsin properties. The first mortgage, encumbering four properties, originally had a choice of law provision selecting Wisconsin law,…

Where dunning letter reveals a debtor’s account number embedded in a barcode it constitutes…

The sole issue raised in the debtor’s FDCPA complaint in Kostik v. ARS Nat. Servs., Inc., No. 3:14-CV-2466 (M.D. Pa. July 22, 2015) was whether the debt collector’s disclosure of Plaintiff’s account number embedded in a barcode constitutes a violation of section 1692f(8) of the FDCPA. The court sided with…