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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Illinois court holds that foreclosure sale purchaser waived defense that lis pendens barred contractor’s…

In Lake County Grading Company LLC v. Forever Construction Inc., et al; 2017 IL App (2d) 160359 (May 19, 2017), the Second District Appellate Court held that a foreclosure sale purchaser and mortgagee, waived the defense that the lis pendens barred the contractor’s suit by its conduct in inducing the…

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Illinois court holds that the foreclosure of real estate is not an attempt to…

U.S. District Court for the Northern District of Illinois held in Hahn v. Anselmo Lindberg Oliver LLC, 1:16-cv-06908 (Mar. 3, 2017) that the foreclosure of real estate is not an attempt to collect a debt under the FDCPA and a law firm that proceeds with foreclosure despite a pending bankruptcy…

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Illinois court holds that HUD requirement for a face to face meeting excused where…

An Illinois appellate court in PNC Bank, v. Wilson, No. 2-15-1189, 2017 IL App (2d) 151189 (March 2, 2017) determined that a mortgage servicer’s failure to strictly comply with the HUD regulations requiring the servicer to request a face to face meeting with the mortgagor prior to instituting a foreclosure,…

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Action on a deficiency judgment not an action on a debt under Florida Collection…

In Dyck O’Neal, Inc. v. Ward, No. 2D15-2989 (Fla. Dist. Ct. App. Jan. 27, 2017) a Florida Appellate court found that a creditor need not comply with Section 559.715 of the Florida Consumer Collection Practices Act (FCCPA) when attempting to enforce a final foreclosure judgment. In this case, after the…

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