In Schlegel v. Wells Fargo Bank, NA, 11-16816 (9th Cir. July 3, 2013) the borrowers alleged they entered into a loan modification agreement with the lender that retained the same interest rate but extended the maturity date of the loan. Shortly afterwards, however, the lender mistakenly began sending the borrowers…
Read More »The debtors in Palomar v. First American Bank, 12-3492 (7th Cir. July 11, 2013) brought an adversary action in a chapter 7 bankruptcy against the holder of a second mortgage on their home asking the court to strip off the mortgage under 11 U.S.C. § 506(a) of the Bankruptcy Code…
Read More »With the exception of two provisions, Illinois Supreme Court Rule 138, amended to protect against identity theft and the disclosure of sensitive information through electronic filing, goes into effect Monday, July 1 2013. Thus, starting today, social security numbers and taxpayer-identification numbers, driver’s license numbers, financial account numbers, and debit…
Read More »On June 5, 2013, in an attempt to reduce the displacement of tenants in property taken in foreclosure, maintain property values and avoid the perception of a neighborhood as being unworthy of investment, the Chicago City Council overwhelmingly passed SO2012-5127, the Protecting Tenants in Foreclosed Rental Property Ordinance Section 15-4…
Read More »On June 5, 2013, in an attempt to reduce the displacement of tenants in property taken in foreclosure, maintain property values and avoid the perception of a neighborhood as being unworthy of investment, the Chicago City Council overwhelmingly passed SO2012-5127, the Protecting Tenants in Foreclosed Rental Property Ordinance Section 15-4…
Read More »The debtors in _In re Davis_, 12-1184 (4th Cir. May 2013) filed a Chapter 7 Bankruptcy to discharge the personal liability on their unsecured debt but left their secured mortgage debt intact. A year later, they filed a Chapter 13 Bankruptcy to reorganize their debts, repay mortgage arrearages and consumer…
Read More »In _Rehbein v. CitiMortgage, Inc._, 2:13CV65 (E.D. Va. Apr. 4, 2013) a Virginia District Court recently rejected a borrower’s attempt to assert that she had a private right of action under the National Mortgage Servicing settlement and Consent Judgment. The borrower commenced proceedings by bringing a preliminary injunction action in…
Read More »In _Hall v. Aurora Loan Services LLC_, 215 Cal. App. 4th 1134, 155 Cal. Rptr. 3d 739 (April 26, 2013) a real estate agent was injured while showing prospective buyers a house that the servicer had taken back in foreclosure. The facts were that one of the features of the…
Read More »In _Parkway Bank and Trust Co. v. State Farm Fire and Cas. Co._, 2013 IL App (1st) 122387 (May 2013), the mortgagee filed a declaratory judgment action seeking declaration that it is entitled to receive insurance proceeds, of $252,830.94, for fire loss that occurred to the property. The insurer answered…
Read More »The Defendants in Wells Fargo Bank N.A. v. Smith, No. SC 92649, __S.W.3d__, (March 19, 2013), attacked the constitutionality of Missouri’s unlawful detainer statute, V.A.M.S §534.2 in an eviction action brought by the mortgagee following a foreclosure. Defendants’ chief argument was that the statute violated their federal and state substantive…
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