The district court in Wilson v. Bank of Am., N.A., CIV.A. 14-2498 (E.D. Pa. Sept. 24, 2014) explicated what duties a servicer has in response to a Notice of Error under the new Regulation X, 12 C.F.R. § 1024.35(e). In _Wilson_, the Plaintiff sent the loan servicer an inquiry which…
Read More »Bank of America, N.A. v. Higgin, 2014 IL App (2d) 131302 (Sept. 26, 2014), a recent appellate decision from Illinois, should serve as a cautionary tale for plaintiff mortgagees in setting their bid at sale. Following judgment of foreclosure, the mortgagee bid $1,905,374.78, which was $83,305.25 more than the judgment…
Read More »The Ninth Circuit held in Merritt v. Countrywide Fin. Corp., 09-17678 (9th Cir. July 16, 2014) that an obligor is not required to allege that he or she has the ability to tender the non-rescindable balance of a loan to state a claim for rescission under Section 1635 of TILA.…
Read More »The Supreme Court of Missouri in Conway v. CitiMortgage, Inc., SC93951 (Mo. Aug. 19, 2014) and Watson v. Wells Fargo Home Mortgage, Inc., SC93769 (Mo. Aug. 19, 2014) addressed whether the actions of a loan servicer who was not a party to the initial transaction are in connection with the…
Read More »Following a trend, the Eleventh Circuit held that a creditor who filed a proof of claim in a Chapter 13 bankruptcy on a debt that it knew to be stale violated the FDCPA. In Crawford v. LVNV Funding, LLC, No. 13-12389(11th Cir, July 2014), neither the debtor nor the trustee…
Read More »The statute addressed in 1010 Lake Shore Ass’n v. Deutsche Bank Nat. Trust Co., 2014 IL App (1st) 130962 (August 12, 2014) was Section 9(g)(3) of the Illinois Condominium Property Act 765 ILCS 605/9(g)(3) which governs the obligations of a purchaser at a foreclosure sale to pay unpaid assessments. The…
Read More »In this relatively straightforward foreclosure action, the Supreme Court of Maine had the occasion to address the rules on establishing standing in a mortgage foreclosure action in that state and the effect of pay-off letter that contemplates the further accrual of fees. In Bank of America, N.A. v. Greenleaf, 2014…
Read More »BAC Home Loans Servicing, LP v. Fulbright, 88853-1 (Wash. June 26, 2014) concerns the interplay between Washington’s Condominium Act, its redemption statute, and its recording act. The borrower purchased a condominium with a loan from Plaintiff-lender. The condominium association recorded its declaration in 2006 and lender recorded its deed of…
Read More »The court in Lucien v. Federal National Mortgage Ass’n, 13-CV-62399 (S.D. Fla. May 23, 2014) was called upon to construe TILA’s confusing and often conflicting statutory scheme, which has resulted in fractured decisions in this district. In Lucien, the mortgagor sued the holder of her loan and its loan servicer…
Read More »The Eleventh Circuit recently joined several circuits in holding that filing a proof of claim in a bankruptcy action based on a debt that is time-barred under state law violates the federal Fair Debt Collection Practices Act (FDCPA). In Crawford v LVNV Funding, LLC, No. 13-12389 (11th Cir. July 2014)…
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