Troutman Sanders: Class Certification Of Unlawful Foreclosure Claims Defeated For Lack Of Commonality

By John C. Lynch , Jason E. Manning and Elizabeth "Liz" S. Flowers On April 30, 2012, the United States District Court for the District of Massachusetts denied class certification of Plaintiffs' unlawful foreclosure claims, finding that Plaintiffs failed to satisfy Rule 23(a) requirements...

Ballard Spahr LLP: Defects in Chain of Title Must Be Raised Prior to Foreclosure

Borrowers alleging defects in a foreclosing lender's chain of title must raise the issue prior to the conduct of the foreclosure sale, Maryland's highest court has ruled. In Thomas v. Nadel , the Maryland Court of Appeals held that a borrower is barred from raising purported irregularities...

Real Cases in Real Estate By Andrea Lee Negroni, Esq. – October 16th, 2012 Update

Real Cases in Real Estate is a weekly update on real estate law, with legal principles illustrated and explained by lawsuits from around the country. The topics are wide-ranging for appeal to a broad spectrum of readers including lawyers, homeowners, investors and the general public. Andrea Lee...

Bergman on Foreclosure: Hidden Danger in Claim that "the Lender Said"

Hidden danger to lenders lurks in a mortgage contract that allows a borrower's account of lender's oral statements to defeat a mortgage foreclosure action, as illustrated in Libertypointe Bank v. 75 East 125th Street [ enhanced version available to Lexis.com subscribers ]. This analysis by foreclosure...

Self-Help for the Foreclosure Purchaser: Maryland Opinion Examines the Self-Help Step of Changing Locks while a Resident Is Out

Maryland Court Affirms Self-Help via Lock-Out but Reverses Conversion Claim Related to Resident's Belongings The Maryland court of appeals will not recognize an impermissible forcible entry when a foreclosure purchaser's lawful possessory interest in a dwelling is enforced (through lock...

Duane Morris: Nevada Ruling Suggests Lenders Wait Until Foreclosure Before Pursuing Guarantor Claim

In a recent case, the Supreme Court of Nevada agreed that a lender needed to wait until the completion of a foreclosure sale before making a deficiency claim against a guarantor. In Ken L. Templeton Family Trust, et al. v. Eighth Judicial District Court of the State of Nevada, et al. , 2013 Nev. Unpub...

When Can Foreclosing Lenders Be Accused Of Acting In Bad Faith?

In a recent decision, the Chancery Division denied a lender's motion to strike a borrower's contesting answer in a foreclosure lawsuit, holding that the borrower had adequately pled a claim that the lender acted in bad faith. While this decision is unique based on the facts of the underlying...

More Courts Reject Eleventh-Hour Attempts To Avoid Foreclosure Based On An Alleged Lack Of Standing

Two more Appellate Division panels have refused to allow defendant's in foreclosure lawsuits to raise standing as an eleventh-hour defense. As we previously reported -- Changing Tide in Forclosure Litigation? Courts Taking Closer Look When Defendants Assert Lack Of Standing At Last Minute -- there...

State Net Capitol Journal Legislative Updates: Super Storm Sandy Victims Take Another Financial Hit

SUPER STORM SANDY VICTIMS TAKE ANOTHER FINANCIAL HIT: Thousands of vacation home and business owners in coastal areas of New Jersey slammed by Hurricane Sandy last October are getting hit with big increases in their flood insurance premiums this year. Richard Bandazian, who owns a vacation home on...

State Net Capitol Journal Legislative Updates: Oregon May Expand Foreclosure Mediation Program

BUSINESS: The OREGON House approves SB 558A, a bill that expands the foreclosure mediation program lawmakers created last year to apply to foreclosures pursued by lenders in courts. It moves to Gov. John Kitzhaber (D) for review (PORTLAND OREGONIAN). ENVIRONMENT: The CONNECTICUT Senate approves...

State Net Capitol Journal Legislative Updates: New Foreclosure and Mortgage Relief Laws in Oregon and Florida

GOVERNORS IN BRIEF: FLORIDA Gov. Rick Scott (R) signed SB 1852, legislation that will distribute $200 million to pay for various mortgage relief programs to help Sunshine State residents harmed in the real estate collapse. The money is part of the state's $8.4 billion cut of the $25 billion settlement...

Foreclosure Destroys Insurable Interest

Every first party property policy of insurance requires that the person insured have an insurable interest in the property, the risk of loss of which was sought to be insured. The policy limits coverage to the extent of the insurable interest. If there is no insurable interest there is no damage to the...

State Net Capitol Journal – October 14, 2013; Mortgage Settlement Money Used To Balance State Budgets

Budget & Taxes MORTGAGE SETTLEMENT MONEY USED TO BALANCE STATE BUDGETS: As part of their settlement last year with major mortgage lenders over the lenders' use of improper mortgage practices contributing to the foreclosure crisis, states received $2.5 billion. But the states have found uses...

Foreclosure Notice Bank Owned Property

Federal Court Refuses To Dismiss Government’s Statutory Claims against Mortgage Originators That Allegedly Defrauded HUD

A federal judge recently rejected motions to dismiss in a suit in which the U.S. government alleged that two mortgage originators and their officers defrauded the Department of Housing and Urban Development (HUD) into insuring risky mortgage loans. In its complaint, the government alleged that the...

mortgage loan modification

Legislation To Fix “Ibanez” Foreclosure Title Defects Primed For Passage

Should Result In Much-Needed Inventory Boost To Housing Market Good news to report for property owners saddled with toxic titles resulting from the seminal U.S. Bank v. Ibanez foreclosure ruling. Massachusetts lawmakers are poised to pass into law a new bill aimed at legislatively clearing up all...

Borrowers' Counsel Can Be Sanctioned over Frivolous Complaints in Foreclosure and Eviction Proceedings, Michigan Court Holds

By the Ballard Spahr LLP Mortgage Banking Group A Michigan appellate court recently held that a borrower's counsel could be sanctioned for filing a complaint for the purpose of delaying foreclosure or eviction. In Edgett v. Flagstar Bank , [ enhanced version available to lexis.com subscribers...

Wisconsin Supreme Court Hears Case Involving Equitable Assignment of Mortgages

The Wisconsin Supreme Court has heard arguments in Dow Family LLC v. PHH Mortgage Corp. , 2013AP221, [ enhanced version available to lexis.com subscribers ], a case involving the Mortgage Electronic Registration System (MERS), an electronic mortgage tracking system operated by MERSCORP. (The oral argument...

Defective 90 Day Cure Notice No Defense To Post-Foreclosure Eviction

Distressed Homeowners Lose Key Defense, While Foreclosure Purchasers Gain More Title Security Last month, the Supreme Judicial Court decided yet another important foreclosure case, U.S. Bank v. Schumacher [ enhanced version available to lexis.com subscribers ]. The issue considered in Schumacher...

Loan Servicer Properly Identified as Party with Authority To Negotiate Mortgage Terms in Foreclosure Notice, Georgia Court Holds

A recent decision by the Georgia Court of Appeals helps to add further clarity to the state’s foreclosure notice statute. The statute, which was amended in 2008, requires that the written notice of a foreclosure sale “shall include the name, address, and telephone number of the individual...

Lenders Have To Do What They Are Told (At Least When It Comes To Accepting Funds To Pay Off A Loan And Cancel A Mortgage)

This was the take home message from a recent Appellate Division opinion -- Lakeland Bank v. Sampson . In that case, Lakeland obtained final judgment of foreclosure against its borrower in connection with a home equity line of credit which was secured by a mortgage on the borrower's home. Lakeland...

After the Bank Forecloses, Must It Actually Sell Your House?

By Philip C. Babler The Wisconsin Supreme Court will answer this question in Bank of New York v. Carson , No. 2013AP544, [ enhanced version available to lexis.com subscribers ]. It heard argument in this case last week. The case began more than 3 1/2 years ago when a widow—physically and...

Lender Allowed To Foreclose But Punished By Court For Violating Consumer Fraud Act

A New Jersey trial court has issued an interesting opinion, [ enhanced version available to lexis.com subscribers ], allowing a lender to foreclose but imposing significant limitations on the lender because the court concluded that the lender had violated the Consumer Fraud Act. In Freedom Mortgage...

D.C. Court of Appeals, Nevada Supreme Court Extinguish Lender's Mortgage Lien Following Association Lien Foreclosures

By Roger D. Winston and Joseph E. Lubinski A recent decision by the District of Columbia Court of Appeals, [ enhanced version available to lexis.com subscribers ], brings into renewed focus the tension between condominium/homeowner associations and lenders when it comes to payment of delinquent...