Consumer Foreclosure: Lawyers May Need to Tread Lightly

Posted on June 15, 2016 by BankruptcyRealEstateInsights

Jackson v ING Bank, FSB (In re Jackson), 545 B.R. 62 (Bankr. D. Mass 1916) –

A chapter 13 debtor sued a mortgagee’s law firm asserting various claims based on the firm’s attempts to exercise remedies in connection with a defaulted mortgage loan, including wrongful foreclosure, breach of contract, deceit and misrepresentation, and violation of a bankruptcy discharge injunction and the Fair Debt Collection Practices Act (FDCPA). The debtor also objected to the mortgagee’s proof of claim. Continue reading →

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Bankruptcy Appeal: Jumping Through Hoops for Standing

Posted on June 8, 2016 by BankruptcyRealEstateInsights

In re Terry, 543 B.R. 173 (E.D. Pa. 2015) –

The bankruptcy court approved a settlement between the debtor and a tax sale purchaser of debtor’s real estate and confirmed the debtor’s chapter 13 plan, with the result that the debtor was allowed to redeem the real estate. The orders were entered over the objections of the city where the property was located, and it appealed to the district court. Continue reading →

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Discharge Injunction: Maybe It Works, and Maybe It Doesn’t

Posted on June 1, 2016 by BankruptcyRealEstateInsights

In re Sanchez, 545 B.R. 55 (Bankr. D.N.M. 2016) –

Chapter 7 debtors reopened their bankruptcy case so that they could file a motion seeking sanctions against a trash collector for violating the discharge injunction. The court found that there was a willful violation and awarded $150 in actual damages and $3800 in attorney fees. Continue reading →

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Mortgage Assignments: Assignment of a Mortgage Without the Underlying Note is A Nullity

Posted on May 25, 2016 by BankruptcyRealEstateInsights

In re Cornerstone Homes, Inc., 544 B.R. 492 (Bankr. W.D. N.Y. 2015) –

A chapter 11 trustee sought a judgment that a series of mortgages were unenforceable as a matter of law because the written assignments transferring them to the current mortgagees were insufficient. If the trustee prevailed, the mortgage loans would be transformed from secured to unsecured claims. Continue reading →

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Mortgage Priority: And What About Equitable Subrogation?

Posted on May 18, 2016 by BankruptcyRealEstateInsights

Stambaugh v. PNC Bank, N.A. (In re Stambaugh), 532 B.R. 572 (Bankr. M.D. Pa. 2015) –

A chapter 13 debtor sought to establish the priority of certain mortgages, and the bank that held all of the mortgages attempted to reorder the priority based on equitable subrogation and subordination claims. Continue reading →

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Filing on the Eve of Foreclosure: Sometimes It Works, and Sometimes It Doesn’t

Posted on May 11, 2016 by BankruptcyRealEstateInsights

In re LJBV Ltd., 544 B.R. 401 (Bankr. N.D. Ill 2016) –

The debtor filed a Chapter 11 case immediately after a receiver was appointed in a state foreclosure proceeding. The mortgagee filed a motion to dismiss the bankruptcy case for cause. Continue reading →

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