At issue in In re West, — B.R. —-, No. 07-23398-JKF, (Adv. No. 08-2075, Bkrtcy.W.D. Pa., Nov. 19, 2009) was whether Section 108(a) or Section 108(b) of the Bankruptcy Code extends the time within which the debtor may rescind a mortgage under TILA. The debtors asserted that their rescission claim…
Read More »In Douglas v. Wilmington Finance, Inc., No. 09 C 1370. (N.D.Ill., November 18, 2009) the mortgagor argued that despite not being brought within the time allowed under TILA her damage claim survived by virtue of 15 U.S.C. §1635(g). That provision reads in any action in which it is determined that…
Read More »Having been denied loan modifications, the Plaintiffs in Williams v. Timothy F. Geithner, et al. 00-1959 ADM/JJG (Nov. 9, 2009 D. Minn.)) sued their mortgage loan servicers, among others, contending that they had a constitutional right to have their mortgages modified under HAMP. Specifically, Plaintiffs contended that the servicer’s failure…
Read More »The U.S. Court of Appeals for the Seventh Circuit held in Huckic v. Aurora Loan Services, 07-3826 (7th Cir. Nov. 2009) that two mortgage servicers did not violate FCRA when they reported delinquencies to a credit reporting agency about a mortgagor who had defaulted on his escrow payment obligations but…
Read More »In Collado v. Boklari, No. —- N.Y.S.2d —— 2009 (N.Y.Dist.Ct.) N.Y. Slip Op. 29447, the respondent sought to vacate a judgment of possession and eviction on the ground that a recent federal law, Title VII of 2009 Emergency Economic Stabilization, “Protecting Tenants at Foreclosure Act” of 2009, requires that a…
Read More »The borrower, in Dahn v. Fifth Third Bank, NO. 3:09-CV-184-JPG-PMF) (S.D.Ill., August 2009) argued that the notice of right to cancel was inaccurate because it deviated from the model form contained in Appendix H of 12 C.F.R. Pt. 226. He argued that the notice was unclear because the section where…
Read More »In a recent unpublished opinion by the United States Court of Appeals for the Eleventh Circuit, Warren vs. Countrywide Home Loans, No. 08-16171 (11th Cir., August 14, 2009) the Court chose to follow the reasoning used by many district courts (citations omitted) that ”an enforcer of a security interest, such…
Read More »In January 2006 an owner of defaulted debt sent a letter to each class member announcing it just purchased the debt and identified the debt collector it retained. The letter contained all of the required disclosures but was accompanied by a second document titled Privacy Notice of Financial Information. The…
Read More »In Landmark Nat. Bank v. Kesler, No. 98,489 (Kan., August 28, 2009) the senior mortgagee filed a foreclosure action but neglected to notice MERS or Sovereign, who held the junior mortgage. After the trial court entered judgment for the senior mortgagee, the property was sold at sheriff’s sale. Sovereign and…
Read More »On July 17 the U.S. Court of Appeals for the Eighth Circuit refused to apply a Minnesota statute that invalidates a mortgage unless both spouses sign the loan documents, saying the case qualifies for an exception under Minnesota case law. In Karnitz v. Wells Fargo Bank NA, No. 08-21 (8th…
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