Press "Enter" to skip to content

Posts published in “Mortgage Banking Foreclosure Law”

Mortgage Banking Foreclosure Law

Illinois App. Court (1st Dist) Holds Trial Court Improperly Denied Borrower’s Estate Opportunity to Show Lack of Capacity

The Appellate Court of Illinois, First District, recently reversed a trial court’s order striking an affirmative defense to a foreclosure, vacated the foreclosure rulings, and remanded the matter for further proceedings.

6th Cir. Holds Mortgagee’s Foreclosure Action Time-Barred Under Tennessee Law

The U.S. Court of Appeals for the Sixth Circuit recently affirmed a trial court’s decision granting summary judgment and dismissing a mortgagee’s foreclosure action as time-barred under Tennessee law, and rejecting the mortgagee's arguments of oral modification, partial payment, and equitable estoppel, as well as its request for an equitable lien.

Illinois App. Court (1st Dist) Holds ‘Small Servicer’ Exempt from RESPA Loss Mitigation Rules

The Appellate Court of Illinois, First District, recently held that a borrower failed to identify any meritorious defense sufficient to stop or undo a judicial foreclosure sale. In so ruling, the Appellate Court rejected the borrower's arguments that the servicer failed to comply with the loss mitigation rules under the federal Real Estate Settlement Procedures Act (RESPA) that she claimed would have allowed her to cure her default, because the servicer qualified as a "small servicer" under 12 C.F.R. 1026.41(e)(4), and was therefore exempt from the loss mitigation rules.

Ohio Supreme Court Rejects Mortgagee’s Writ of Mandamus Challenges to County Tax Sales

The Supreme Court of Ohio recently upheld the dismissal of a mortgagee's writ of mandamus actions seeking to avoid transfers of REO and mortgaged property to county land banks for unpaid taxes, holding that the mortgagee should have pursued other available remedies in state court. 

NY High Court Rules Mortgagee Could Challenge Proper Notice of Tax Foreclosure

The New York Court of Appeals recently held that a plaintiff mortgagee was permitted to dispute and contradict whether a taxing authority complied with the statutory tax foreclosure mailing and notice requirements contained in N.Y. Real Property Tax Law (RPTL) 1125(1)(b), and thereby challenge the validity of a tax foreclosure.

Illinois App. Court (1st Dist) Rejects Mortgagors’ Claims of Forgery and IMFL Violations

The Appellate Court of Illinois, First District, recently affirmed a trial court’s summary judgment ruling in favor of a mortgagee, holding that the mortgagors did not raise a triable issue of fact regarding the authenticity of a mortgage and promissory note, and rejecting the mortgagors' arguments under the Illinois Mortgage Foreclosure Law that the foreclosure sale price was "unconscionable" and that "justice was not done" with the foreclosure sale.

Illinois App. Court (1st Dist) Reverses Dismissal of Claims That Choice of Law Provisions in Mortgage Loan Docs Violated IMFL

The Illinois Court of Appeals, First District, recently reversed a trial court’s order dismissing a quiet title lawsuit that alleged a lender's commercial loan agreement violated the Illinois Mortgage Foreclosure Law (IMFL) and was invalid and unenforceable.

8th Cir. Upholds $5.4 Million Damages Award in Mortgage Loan Indemnification Lawsuit

In a repurchase and indemnification action involving mortgage loan liabilities, the U.S. Court of Appeals for the Eighth Circuit recently upheld a trial court’s $5.4 million compensatory damages judgment and over $14 million attorney fee award in favor of the plaintiff, while overturning the trial court’s award of post-judgment interest.

NY Court of Appeals Rules RPAPL 1304 Notice May Include Add’l Accurate and Relevant Information

The New York Court of Appeals, the state's highest court, recently reversed the ruling of an intermediate appellate court and held that the inclusion of information that is not “false, misleading, obfuscatory, or unrelated” does not void an otherwise proper notice to borrowers sent pursuant to New York Real Property Actions and Proceedings Law § 1304, and thus does not bar a subsequently filed foreclosure action.