Category Archives: Financing

Reverse Mortgages: Ignore Loan Documents at Your Peril

Posted on October 31, 2018 by BankruptcyRealEstateInsights

D’Alessio v. CIT Bank, N.A., 587 B.R. 211 (Bankr. D. Mass 2018) – A chapter 13 debtor sought a court determination that he was a “Borrower” for purposes of a reverse mortgage executed by his deceased wife. The mortgagee disagreed contending … Continue reading →

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Mortgage Assignee Claims: Hang on To That Promissory Note

Posted on October 24, 2018 by BankruptcyRealEstateInsights

In re Benyamin, 587 B.R. 243 (Bankr. S.D. N.Y. 2018) – Chapter 11 debtors objected to a proof of claim that appeared to be filed by a servicer on behalf of an assignee of the original mortgagee. The court considered both … Continue reading →

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Mortgagor Claims: There is A Limit to the Ability to Invoke the Assistance of Federal Courts

Posted on October 3, 2018 by BankruptcyRealEstateInsights

Zapotocky v. CIT Bank, N.A., 587 B.R. 589 (S.D.N.Y. 2018) – A former debtor sued a mortgagee in federal district court claiming a breach of contract by the lender and challenging a foreclosure judgment entered in state court. This is one … Continue reading →

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Bad Faith Filing: A Debtor’s “Business” Must Consist of More Than Litigating with the Mortgagee

Posted on August 29, 2018 by BankruptcyRealEstateInsights

In re Encore Prop. Mgmt. of Western N.Y., LLC, 585 B.R. 22 (Bankr. W.D. N.Y. 2018) – A mortgage lender moved to dismiss a chapter 11 case on the grounds that it was filed in bad faith. This was the second … Continue reading →

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Defective Mortgages: Variations on a Theme

Posted on August 15, 2018 by BankruptcyRealEstateInsights

Harker v. PNC Mtg. Co. (In re Oakes), 581 B.R. 500 (6th Cir. B.A.P. 2018) – A chapter 7 trustee sought to avoid a recorded mortgage with a defective acknowledgment using his strong arm powers. The bankruptcy court ruled in favor … Continue reading →

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Defective Mortgages: There Is Constructive Notice, and Then There Is Inquiry Notice

Posted on August 1, 2018 by BankruptcyRealEstateInsights

Kelley v. USAA Fed. Sav. Bank (In re Jones), 580 B.R. 916 (Bankr. M.D. Ga. 2017) – A chapter 7 trustee sought to avoid a lender’s lien on property of the debtor. The recorded deed of trust was not signed by … Continue reading →

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