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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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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Florida court holds that ability to enforce a lost note does not create a…

In another chapter in the seemingly never ending saga of Florida’s statute of limitations litigation, a Florida Appellate Court recently held that a foreclosure complaint was not time barred because the time had run on the bank’s ability to enforce a lost note. Mielke v. Deutsche Bank Nat’l Tr. Co.…

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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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New Tax Law May Impact the Mortgage Market For Cash Out Refinances and Junior…

The new Tax Cuts and Jobs Act (“TCJA”) signed into law on December 22, 2017, may impact the mortgage market for cash out refinances and for junior mortgages taken in order to cash out home equity. Under the TCJA for the taxable years beginning January 1, 2018 through December 31, 2025, only…

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The legal odyssey of the validity of a mortgage made by an unlicensed mortgage…

The background: In 2014, the Illinois Appellate Court held in First Mortgage Co. v. Dina, 2014 IL App (2d) 130567, 11 N.E.3d 343 (Dina I) that under the Illinois’ Residential Mortgage License Act (Act) if the originating mortgagee was not licensed a the time of origination the mortgage was void.…

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Illinois court holds that a mortgagee can execute on an assignment of rents provision…

An Illinois appellate court construed the applicable statute on assignment of rents and concluded that a mortgagee can enforce an assignment of rents provision without taking actual or constructive possession of the property if the mortgagee and mortgagor agree by, for example, a forbearance agreement. In BMO Harris Bank N.A.…

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Eleventh Circuit gives its “stamp of approval” to a bankruptcy disclaimer contained in a…

The Eleventh Circuit in Helman v. Bank of America, 15-13672, – Fed. Appx.– (11th Cir. April 12, 2017) concluded that the least sophisticated consumer would not be misled that it was personally liable for a discharged debt where the monthly statements sent by the debtor’s bank contained a statement that…

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Promise to Borrower to modify loan when servicer knows that Borrower is not eligible…

The Ninth Circuit held that a servicer’s promise to a borrower to modify her loan when it knew knows that the borrower was not eligible for a loan modification was an unfair practice under California’s Unfair Competition Law § 17200. The Borrower in Oskoui v. J.P. Morgan Chase Bank, N.A.,…

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Illinois Appellate Court holds that condominium law puts no time limit on when the…

In 5510 Sheridan Road Condominium Association v. U.S. Bank, 2017 IL App. (1st) 160279 (March 31, 2017) the First District Appellate Court clarified some confusion over how Section 9(g)(3) of the Condominium Property Act (765 ILCS 605/9(g)(3)) operates to foreclose an assessment lien and concluded that when the foreclosure sale…

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