In Fernandes v. JPMorgan Chase Bank, N.A., (N.D.I.L., No. 11-CV-652, October 13, 2011), the borrower of a second mortgage brought a complaint seeking rescission of the mortgage under the Truth In Lending Act (TILA) due the original creditor’s failure to provide material disclosures. The borrower also sought statutory damages for…
Read More »A recent opinion by an Illinois Appellate court removes a major defense to a mortgagee or servicer’s attempt to upset a tax sale when they did not receive notice. In Re Application of the County Treasurer, No. 1-10-1966. (Ill. App. Ct. Aug. 25, 2011) largely undermines a tax deed purchaser’s…
Read More »The mortgagee in Lucas v. U.S. Bank, N.A., 28S01-1102-CV-78, (Ind. Sept. 15, 2011) brought an action to foreclose a mortgage to which the borrower responded by filing affirmative defenses and counterclaims for fraud, breach of fiduciary duty and violations of the Truth in Lending Act. He requested jury trial on…
Read More »In 1998, the Appellant in Matrix Fin. Services Corp. v. Frazer, Opinion No. 26859, 2011 WL 3452078 (S.C. Aug. 8, 2011) defaulted the mortgagors in a lawsuit filed in California where they lived at the time. The mortgagors then purchased a home in South Carolina in January 2001 financed by…
Read More »The borrowers in Glarum v. LaSalle Bank Nat. Ass’n, 4D10-1372 (Fla. Dist. Ct. App. Sept. 7, 2011) admitted in their answer to a foreclosure action that they had not made payments according to the terms of the note. However, they denied the mortgagee’s allegations regarding the amount of the default.…
Read More »In Beneficial Maine Inc. v. Carter, 2011 ME 77, __A.3d__ (July 7, 2011) the borrower’s challenged the foundation presented by the plaintiff mortgagee to support the admissibility of its mortgage records pursuant to the business records exception to the hearsay rule. The plaintiff relied on the affidavit of an employee…
Read More »As part of the Home Affordable Modification Program (HAMP), the defendant servicer in Stagikas v. Saxon Mortg. Services, Inc., CIV.A. 10-40164-FDS (D. Mass. July 5, 2011) entered into a Trial Period Plan agreement (TPP) with the plaintiff who later sued when the servicer did not permanently modify the mortgage. The…
Read More »The U.S. Bankruptcy Court for the Central District of California granted a debtor’s motion seeking to enjoin a creditor’s foreclosure sale, ruling that the creditor was bound by the terms of the debtor’s confirmed Chapter 13 plan even though the debtor’s automatic stay had been lifted.. The primary issue in…
Read More »In Grden v. Leikin Ingber & Winters PC, 643 F.3d 169 (June 27, 2011, 6th Cir. 2011) the debtor plaintiff sued his creditor’s law firm under the FDCPA on two theories. First, in a state-court debt-collection action against the debtor, the defendant served him with a motion for default judgment,…
Read More »In Morales v. Chase Home Finance LLC, (C 10-02068, N.D. Cal. April 11, 2011), two borrowers filed a putative class action on behalf of California homeowners who complied with HAMP Trial Period Plan (TPP) contract, but who had not received a permanent HAMP modification. The borrowers’ alleged that they executed…
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