Illinois Supreme Court Rules 113 and 114, which were originally slated to go into effect March 1, 2013, but were pushed back to May 1, 2013, alter the mortgage foreclosure process in several substantive ways. First, Rule 113 requires that the plaintiff attach to the complaint a copy of the…
Read More »In January, 2013 the City of Chicago amended the Municipal Code by regulating the activities of debt collectors of consumer debt. Some of those rules may affect mortgage loan servicers and debt buyers. Its effective date is July 1, 2013. The amendment defines a debt collector any person who in…
Read More »In Central Mortgage Co. v. Kamarauli, 2012 IL App (1st) 112353 (Nov. 5, 2012), the mortgagee brought a residential mortgage foreclosure against the mortgagors. The mortgagors, husband and wife, were each served by substitute service on the wife’s mother who accepted service at the mortgagor’s usual place of residence. The…
Read More »The borrowers in Bank of America v. Freed, 110749 (Ill. App. Ct. Dec. 28, 2012), took out a construction loan with a maximum limit of $205 million. Among other things, the loan was secured by a guaranty, pursuant to which the guarantors’ liability was limited to $50 million. The limited…
Read More »In Pfeifer v. Countrywide Home Loans, Inc., A133071 (Cal. App. Ct. Dec. 12, 2012) the borrowers sought to enjoin a non-judicial foreclosure. They contended, among other things, that because their mortgage loan was insured by the FHA, and the deed of trust securing the property was expressly subject to the…
Read More »In Medrano v. Flagstar Bank, 11-55412 (9th Cir. Dec. 11, 2012), a mortgage loan servicer sent a notice of escrow shortage to the borrowers and demanded that they increase their monthly payments or make a lump-sum payment to cover the escrow shortage. The borrowers sent three letters to the servicer…
Read More »In Lox v. CDA, Ltd. (No. 11-2729, 7th Cir., August 2, 2012), a consumer sued a debt collector alleging that the collector included a warning in a dunning letter for unpaid doctor’s fees that if the consumer failed to pay his debt within 48 hours a lawsuit could be brought…
Read More »A California appeals court determined that the lender could not charge a default rate of interest under the note’s acceleration clause after the note matured or otherwise became fully due and payable. In JCC Development Corp. v. Levy, 208 Cal. App. 4th 1522, 146 Cal. Rptr. 3d 635 (August 31,…
Read More »In FirstMerit Bank v. Balin, (No. 11 CV 8809, ND IL, Sept. 11, 2012), the assignee bank purchased defendants’ loan from the FDIC which was acting as the receiver of the bank which originated the loan. After the assignment, the loan was declared in default and the assignee sued to…
Read More »In Ragland v. U.S. National Bank Ass’n, 209 Cal. App. 4th 182 (Sept. 11, 2012) a California appellate court held that where a lender instructs a borrower to miss a mortgage payment in order to qualify for consideration for a loan modification, and then proceeds to foreclose, the borrower has…
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