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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Florida Appellate Court says lender could have recovered interest accrued beyond the statute of…

In Grant v. Citizens Bank, N.A., 5D17-726 (Dec. 26, 2018) a Florida Appellate Court retreated from its prior rulings that a lender could not recover in a foreclosure amounts that accrued more than five years prior to the filing of the lawsuit. Nevertheless, it held that the trial court erred…

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Rhode Island court holds mortgage extension agreement ineffective to extend duration of mortgage where…

In Bayview Loan Servicing, LLC v. Providence Bus. Loan Fund, Inc., No. 2018-18-APPEAL (R.I. Jan. 29, 2019) the Rhode Island Supreme Court holds that a recorded amendment to a mortgage which did not state the duration of the extension of the mortgage was ineffective to extend the validity of the…

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Amendments to Pennsylvania consumer protection statute will not be applied retroactively

In Johnson v. Phelan Hallinan & Schmieg, LLP, 2019 PA Super 11 (Jan. 8, 2019) the Superior Court of Pennsylvania upheld a finding that a 2008 amendment to state consumer protection which raised the statutory limit for qualifying loans from $50,000 to $217,873.5 will not be applied retroactively. In this…

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New Jersey court says mortgagor may not fail to pursue a defense and then…

The Superior Court of New Jersey upheld a decision of a lower court granting judgment for a mortgagee in a civil action alleging that the mortgagee engaged in fraud by obtaining a foreclosure judgment when there was allegedly a loan modification in place. The appellate court held that because the…

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Ambiguous language in reverse mortgage sufficiently incorporated the Massachusetts statutory power of sale

James B. Nutter & Co. v. Estate of Murphy, 478 Mass. 664 (Feb. 1, 2018) concerned the right of a holder of a reverse to foreclose under Massachusetts’s statutory power of sale mechanism where the right is not expressly reserved in the security instrument. In 2007 and 2008, three elderly…

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Florida court holds it is not misleading to report accelerated debt as delinquent under…

The U.S. District Court for the Southern District of Florida held that a loan servicer that reported to credit reporting agencies that a mortgage loan was 120 days or more delinquent and in foreclosure, but did not specify that the loan was accelerated did not violate the Fair Credit Reporting…

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Illinois court holds that suit on note is barred as an impermissible second refiling…

The First District Appellate Court held in First Midwest Bank v. Andres Cobo et al., 2017 IL App (1st) 170872 (Nov. 6, 2017) that a breach of contract complaint filed after the mortgagee’s voluntary dismissal of both a prior foreclosure action and a prior breach of note suit was barred…

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Illinois Appellate Court holds that Fed Ex shipping label is not conclusive proof that…

An Illinois Appellate Court recently reversed a mortgage foreclosure judgment finding there was a question of fact as to whether the mortgagee had sent the face to face meeting notice to the mortgagors in compliance with HUD rules. In U.S. Bank Trust National Association v. Hernandez, 2017 IL App (2d)…

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Servicemembers Civil Relief Act provides no protection to a mortgagor whose obligation is incurred…

In an issue of first impression, the Fourth Circuit held in Sibert v. Wells Fargo Bank, N.A., 863 F.3d 331 (4th Cir. July 17, 2017), that 50 U.S.C. § 3953 of the Servicemembers Civil Relief Act (“SCRA”) offers a mortgagor who has multiple periods of military service no protection if…

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