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Posts published in July 2021

Calif. App. Court (4th Dist) Holds Prior Unlawful Detainer Judgment Did Not Bar Borrowers’ Current Claims

The California Court of Appeal, Fourth Appellate District, recently held that a trial court erred in ruling that several borrowers' claims were precluded by a prior unlawful detainer judgment entered against them following the foreclosure sale of their home.

8th Cir. BAP Reverses Chapter 12 Plan Confirmation for Lack of Evidentiary Hearing on Disputed Collateral Values

The U.S. Bankruptcy Appellate Panel for the Eighth Circuit vacated the bankruptcy court's order confirming a farm debtor's chapter 12 plan, concluding that the bankruptcy court erred by failing to hold an evidentiary hearing to determine the value of a bank's collateral where the collateral was disputed. The Panel also concluded that the bank needed to file a proof of claim.

EDNY Dismisses Multiple Hunstein Cases for Lack of Standing, Issues Warning to Plaintiff’s Attorneys on Questionable Claims

Scolding plaintiff’s attorneys who “manipulate” the FDCPA for their own personal gain, U.S. District Judge Gary R. Brown on July 23 issued an opinion in a consolidated matter dismissing multiple complaints alleging debt collectors violated the FDCPA by transmitting consumer information to lender vendors engaged to print or send dunning letters.

9th Cir. Holds Mortgagee May Challenge HOA Foreclosure Sale That Violates Bankruptcy Automatic Stay

The U.S. Court of Appeals for the Ninth Circuit recently reversed a trial court's order granting summary judgment in favor of the buyer at a homeowners association’s non-judicial foreclosure sale that was conducted in violation of the automatic stay in the borrower's bankruptcy, and against a mortgagee whose interest in the foreclosed property would have been extinguished. 

Consumer Bankruptcy in the Age of COVID-19

The last year and a half was a time to be remembered in bankruptcy law. It started with an eye on increasing the ability of small businesses to utilize the Chapter 11 process in a more efficient and less expensive way, which led to a record number of commercial filings, a reduction in consumer filings, and a test of the bankruptcy system. What will the second half of 2021 look like?

Illinois Supreme Court Vacates Foreclosure Judgment Due to Service in Cook County by Non-Appointed Process Server

The Supreme Court of Illinois recently reversed a trial court order in a case filed outside of Cook County denying a Cook County borrower’s petition challenging a foreclosure judgment as void for lack of jurisdiction, finding that a licensed or registered private detective may not serve process in counties with a population of two million or more – such as Cook County -- without special appointment under 735 ILCS 5/2-202.

Calif. App. Court (5th Dist) Reverses Quiet Title Judgment Against Foreclosing Mortgagee

The California Court of Appeals for the Fifth Appellate District recently reversed a trial court's ruling under the California Code of Civil Procedure section 473 to set aside a default and a judgment quieting title against a mortgagee that had foreclosed and acquired title to the subject property.

7th Cir. Upholds Stay of Federal Lawsuit by Borrower With Parallel State Court Foreclosure Litigation

The U.S. Court of Appeals for the Seventh Circuit recently affirmed a trial court's ruling to stay federal court proceedings brought by a litigious borrower, noting their practical identity to a pending state contested foreclosure action involving the same parties.