In Redmond v. Fifth Third Bank, No. 08-4288 (7th Cir., October 2010), the debtor filed for Chapter 13 bankruptcy protection after he defaulted on his mortgage. In 1998 there was an agreed order under which the debtor agreed to make monthly payments for a period and then a final balloon…
Read More »A timely decision out of Florida throws some welcome light on the affidavit controversy swirling around the default servicing world. In Freemon v. Deutsche Bank Trust Co. Americas as Trustee, No. 4D09-4275 (4th Dist. Fl. Nov. 2010), the mortgagee moved for summary judgment in a foreclosure action after the mortgagor…
Read More »The issue at bar in Medeiros v. Client Services, Inc., 09 CV 6170 (N.D. Ill. Aug. 17, 2010) was whether a debt collectors efforts to collect the debt by contacting the debtor’s attorney violated the FDCPA. After the debtor received a dunning letter it sought legal assistance from a legal…
Read More »In Hofstetter v. Chase Home Finance, LLC, C 10-01313 (N.D. Cal., Aug. 16, 2010) the mortgagors had a home equity line of credit that had no opening balance. The lender suspended future draws because the mortgagors’ properties had declined in value. After the credit was suspended the lender advised the…
Read More »The Sixth Circuit resolved a split in the Southern District of Ohio as to whether the proper arrearage amount in a Chapter 13 plan includes fees and costs permitted by the contract terms and applicable non-bankruptcy law even where the debt is undersecured. In Deutsche Bank National Ass’n v. Tucker,…
Read More »In Avelo Mortg., LLC v. Jeffery, A-0765-08T1 (N.J. Super. Ct. App. Div. July 15, 2010) the Borrowers defended a foreclosure action by arguing that the failure of the lender to comply with their notice of rescission entitles them to a dismissal of the foreclosure complaint because the security interest is…
Read More »The Seventh Circuit in Swanson v. Citibank, N.A., 10-1122 (7th Cir. July 2010) has allowed a vaguely worded complaint alleging violations of the Fair Housing Act to proceed despite a strong dissent from Judge Posner. In this case the Plaintiff applied for a home-equity loan with the Bank having been…
Read More »In Gburek v. Litton Loan Servicing LP, 08-3776, (7th Cir. July 27, 2010) the servicer sent a delinquent borrower a letter offering to discuss ways she could avoid losing her home a foreclosure and asking for current financial information. A few days later, she received a letter from a firm…
Read More »The right of a mortgage loan servicer to sue has been the subject of much litigation and not only in the mortgage foreclosure area. In a recent Seventh Circuit opinion, CWCapital Asset Mgmt., LLC v. Chicago Properties, LLC, 09-3506 (7th Cir. June 29, 2010) a mortgage servicer sued the mortgagor…
Read More »In Townsend v. M & T Mortg. Corp., 3:09CV1866 (M.D. Pa. June 23, 2010) the Plaintiffs sued in District Court for the Defendant’s attempt to collect a debt that had been previously discharged in Bankruptcy. The Plaintiffs asserted that recovery was available under §§ 524(a)(2) and 105(a) of the U.S.…
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