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Posts published in “Foreclosure”

Texas Supreme Court Holds Foreclosure Statute of Limitation Reset by Rescission Sent With Reacceleration Notice

The Supreme Court of Texas recently held that, when a lender or loan servicer rescinds its acceleration of a loan in compliance with Texas Civil Practice and Remedies Code Section 16.038, the rescission resets the statute of limitation even if it is combined with a notice of reacceleration.

Illinois App. Court (5th Dist) Rejects Borrower’s Challenge to Foreclosure Based on Error in Prior Foreclosure

The Appellate Court of Illinois, Fifth District, recently held that, because the defendant borrowers failed to file their petition for relief from a foreclosure judgment in the same proceeding in which the allegedly void order was entered, as required under Illinois procedural rules, the petition should have been dismissed without prejudice.

Illinois App. Court (1st Dist) Holds Defects in Summons Allowed Borrower to Vacate Two Different Foreclosure Judgments

The Appellate Court of Illinois, First District, recently held that a trial court should not have rejected a borrower's attempt to vacate two different foreclosure judgments against him on the grounds of defects in service of process in those actions.

Calif. App. Court (4th Dist) Holds HOA Foreclosure Buyer is ‘Successor in Interest’ Under § 2924c

The California Court of Appeal, Fourth District, recently held that a party who purchased the collateral property through a homeowners association foreclosure sale is a "successor in interest" under California Civil Code § 2924c, and therefore has the right to cure any payment defaults and reinstate the loan and has standing to bring a wrongful foreclosure action.

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.

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.

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.