After borrowing over a million dollars to develop property, the debtor in Firstmerit Bank, N.A. v. Soltys, 2015 IL App (1st) 140100 (Mar. 11, 2015) transferred his interest in six other properties to separate Illinois land trusts. The development project failed a year later and the bank commenced foreclosure proceedings.…
Read More »The Seventh Circuit reversed a district court’s decision which held that under TILA the date of receipt of an online mortgage payment is the date the servicer receives the funds rather than the date the online payment is authorized. In Fridman v. NYCB Mortgage Co., 14-2220 (7th Cir. Mar. 11,…
Read More »In Old Second Nat. Bank v. Indiana Ins. Co., 2015 IL App (1st) 140265, the defendant insurance company appealed from an order awarding a monetary judgment and pre-judgment interest to the mortgagee arising from the insurer’s denial of coverage under a policy of insurance. The facts were not disputed. The…
Read More »The disposition of a Commercial Mortgage-Backed Securities (CMBS) loan purchaser’s attempt to secure a deficiency judgment against the mortgagor in Borman, LLC v. 18718 Borman, LLC, No. 14-1419 (6th Cir. Feb. 3, 2015) required familiarity with the structure of CMBS loans. The Sixth Circuit explained that in order to attract…
Read More »On the court’s motion, debtor and his counsel in Huebner v. Midland Credit Management, Inc., No. 14-cv-6046 (E.D. N.Y., Feb. 11, 2015), were ordered to show cause why debtor’s bogus FDCPA complaint against defendant collection agency should not be dismissed with attorneys’ fees, costs, and sanctions to issue. In what…
Read More »The Consumer Financial Protection Bureau (CFPB) brought an action against a law firm alleging the firm violated section 12 U.S.C. §2607(a) of RESPA prohibiting the giving or receiving of any fee, kickback, or thing of value, when it allegedly received kickbacks masked as profit distributions from title companies in which…
Read More »The Illinois Supreme Court recently reversed an appellate court opinion holding that a complaint filed by an unregistered collection agency is a nullity, and any judgment entered on such a complaint is void. LVNV Funding, LLC v. Trice, 2015 IL 116129 (Feb. 27, 2015) has an interesting procedural history. After…
Read More »The debt collector in Buchanan v. Northland Group, Inc., No. 13-2523 (6th Cir. Jan. 13, 2015) made a settlement offer to the debtor to resolve an unpaid debt without disclosing that the statute of limitations had run on the debt. The debtor sued claiming that the letter falsely implied that…
Read More »An Oregon Bankruptcy Court interpreting Section 11 U.S.C. §1322(b)(9) held that a bankruptcy plan that provid[ed] for the vesting of mortgaged property in a lender at the time of confirmation may be confirmed over the lender’s objection. In Re Watt, No. 14-31295-tmb13, (Bankr. D.OR. Oct.15, 2014). Debtors, in an effort…
Read More »The Chapter 13 debtor in In re LaGrone, Bankruptcy No. 13-B-21423; Adversary No. 14-A-00587, (Bankr. N.D. Ill. Jan. 21, 2015) brought an adversary proceeding against debt collector alleging that the debt collector violated the Fair Debt Collections Practices Act (FDCPA) when the debt collector filed a proof of claim on…
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