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Illinois App. Court (1st Dist) Rejects Borrower’s Arguments That Breach of Forbearance Agreement Was Not ‘Material’

The Appellate Court of Illinois, First District, recently rejected a borrower's arguments that his breach of a forbearance agreement was immaterial, and that the lender was attempting to use the breach for an improper purpose by attempting to recover substantially more than the amount to which it was allegedly entitled.

7th Cir. Rejects Bankruptcy Trustee’s Challenges to Pre-Petition Sale of Debtor’s Debts

The U.S. Court of Appeals for the Seventh Circuit recently rejected a bankruptcy trustee's avoidance and fraudulent transfer claims, holding that a debt purchase and sale agreement between a bankrupt debtor, its original creditor, and its new creditor was not avoidable because it did not qualify as a transfer of “an interest of the debtor in property.”

9th Cir. Holds Chapter 13 Trustee Not Entitled to Compensation When Case Dismissed Prior to Confirmation

The U.S. Court of Appeals for the Ninth Circuit recently reversed a contrary trial court ruling and joined with the U.S. Court of Appeals for the Tenth Circuit in holding that a Chapter 13 trustee is not entitled to a percentage fee of plan payments as compensation for her work in a Chapter 13 case when the case is dismissed prior to confirmation.

1st Cir. Rejects Debt Collector’s Appeal from Order Denying Motion to Compel Arbitration

The U.S. Court of Appeals for the First Circuit recently dismissed an appeal in a putative class action removed from Massachusetts state court to federal trial court concerning a motion to compel arbitration, holding that the order was not a final decision and was not within an exception that would permit interlocutory review.

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.