Summary: On October 21, 1998, the Clouses granted a Deed of Trust against their home originally to Homecomings Financial, later assigned to Deutsche Bank and serviced by GMAC. On June 22, 2012, Turnip Investments, following its suit against the Clouses, purchased the property at a judgment execution sale for $1,000.
Summary: Debtors sought authority to quitclaim their previous residence in Florida to the SBA, which held a mortgage against the property but had declined to foreclose. The bankruptcy court first held that 11 U.S.C. § 1325(a), while property may be “surrendered”, the Bankruptcy Code does not define that term but it has “has been described as the relinquishment of all rights in property, including the right to possess the collateral.” IRS v. White (In re White), 487 F.3d 199, 205 (4th Cir. 2007); 8 Collier on Bankruptcy ¶ 1325.06 (Alan N. Resnick & Henry J.
Summary: Despite being provided with evidence in the form of cancelled checks and insurance policies showing that they were not delinquent in their mortgage payments, Citimortgage commenced foreclosure against the Nances. After refinancing their house, the Nances brought suit against Citimortgage alleging, among other causes of action, unfair and deceptive trade practices, negligent and/or intentional infliction of emotional distress, defamation and negligent and/or intentional damage to credit report. Citimortgage moved to dismiss. As to the unfair and deceptive trade pr
Summary: In 2006, Devane executed a promissory note and Deed of Trust in favor of Aurora. Aurora subsequently, erroneously asserted that Devane violated the repayment terms of the note on six occassions. In September 2010, an agent of Aurora informed Devane that it had misapplied payments made by Devane to another account. At that time, Devane was place on a new payment plan, but her original payments were still not applied.
Summary: The Joneses brought a breach of contract claim against Fulton Bank, alleging that Fulton Bank failed to send them a proper thirty-day pre-acceleration notice. See Bayview Loan Servicing, LLC v. Simmons, 654 S.E.2d 898, 901 (Va. 2008). The Joneses also challenged the appointment by Fulton Bank of a Substitute Trustee with instructions to commence foreclosure as not complying with the Deed of Trust.
Summary: Stephens fell delinquent on her mortgage with HSBC and, prior to HSBC taking any action, sought a declaratory judgment that her mortgage contract was void ab initio, as it contained a waiver of her appraisement rights under South Carolina Code § 29-3-680.
Summary: Wells Fargo sought a reformation of a Deed of Trust, which it discover, after the borrowers defaulted and Wells Fargo foreclosed (putatively purchasing the property itself), did not describe the actual real property upon which the house was built. The trial court held that as Wells Fargo, having purchased the property at foreclosure, was no longer a lender and lacked standing as a purchaser to seek reformation. The Court of Appeals disagreed, following Citifinancial Mortg. Co. v. Gray, 187 N.C. App.
Summary: Petri originally had a mortgage with Luxury Mortgage Corp., but subsequently Bank of America (“BOA”) commenced foreclosure proceedings. Appealing the order allowing foreclosure, Petri argued that BOA was not the true holder of the note authorized to foreclose.
Summary: The Register of Deeds for Guilford County (ROD) brought suit against MERS, LPS and most of the large mortgage servicers asserting that the various practices of the mortgage industry violated the requirements of N.C.G.S. § 45-36.9, were unfair and deceptive trade practices, and constituted an unjust enrichment. The Defendants sought dismissal of the complaint pursuant to Rule 12(b)(1) and (6). N.C.G.S.
Abstract: Filing for bankruptcy is the primary legal mechanism by which homeowners in foreclosure can exert control over ownership of their home, yet little is known about the interplay between bankruptcy chapters, mortgage servicers, state foreclosure laws, and home foreclosure auctions. We analyze 4,280 lower-income homeowners in the United States who were more than 90 days late paying their 30-year fixed-rate mortgages. Two dozen organizations serviced these mortgages and initiated foreclosure between 2003 and 2012.