I frequently hear from clients and prospective clients telling me that they have “rearranged” their financial affairs through the use of so-called “quitclaim deeds” or other contractual mechanisms by which title to property–and by extension–liability for a mortgage, is transferred. The most common appearance of this tends to be in the marital dissolution and property [...]
A deficiency is what is left on the debt after a lender forecloses. Simple example: House worth $250k, debt of $450k, there’s going to be a deficiency of $200k. It can be principal and interest on the specific loan that was actually foreclosed, or it can be a completely different loan, like a second or third deed of trust. California is highly unusual and is very pro debtor in this regard. More often then not, deficiencies are barred due to the generous anti-deficiency rules.
The attacks on the Mortgage Electronic Registration System (“MERS”) continue unabated at all levels. In the case MERS v. Johnston (Rutland County Superior Court case no. 420-6-09 Rdcv) another Court has held that MERS doesn’t have standing to complete a foreclosure of a mortgage which did not specifically name it as the mortgagee, or which secures a promissory note that didn’t specifically name MERS as payee. The Vermont opinion relies heavily on the Landmark National Bank v. Kesler decision from the Kansas Supreme Court issued in September of this year. The Kesler decision, in turn, relied heavily on the 2005 Nebraska Supreme Court decision Mortgage Elec. Reg. Systems v. Nebraska Dept. of Banking, 270 Neb. 529, 530, 704 N.W.2d 784 (2005).
If I had to guess, this issue seems headed for the US Supreme Court, though a few Federal Courts of Appeal are probably going to have to weigh in before SCOTUS get turns its eye to it. In the mean time, click on the article hearing to learn more about how some courts are handling the analysis.
On August 28, 2009 the Kansas Supreme Court handed foreclosure advocates a major victory in the case Landmark National Bank v. Kesler. The decision appears to be a fairly wonkish and dryly academic legal essay–and it is–but the implications could be monumental and could have some effect on more than 60 million mortgages in the United [...]
More and more people who can afford to pay their mortgages are actually choosing to walk away.
One of the best options for people facing foreclosure is the “deed in lieu of foreclosure,” or as it’s more frequently referred to, “deed in lieu.” Essentially, this is the fancy legal term for what most folks would describe as “mailing the keys to the lender,” or as it’s being called lately, “jingle mail.” Giving the the house back to the bank instead of waiting for it to foreclose. There are some good reasons for doing this if you have the option.
So what’s a “predatory loan?” Well, people who live in Massachusetts now know because on Tuesday of this past week the Massachusetts Supreme Court weighed in on the issue. (Here’s the Massachusetts Attorney General’s press release.) I’m pretty sure that for all the non-lawyer readers out there, reading case law is only slightly more interesting [...]
BOTSFORD, J. The Commonwealth, acting through the Attorney General, commenced this consumer protection enforcement action against the defendant Fremont Investment & Loan and its parent company, Fremont General Corporation (collectively, Fremont), claiming that Fremont, in originating and servicing certain “subprime”(3) mortgage loans between 2004 and 2007 in Massachusetts, acted unfairly and deceptively in violation of [...]
Now, I don’t mean to be overly flippant or anything, nor to be accused of promoting “irresponsible behavior” by advocating that people walk away from valid and legitimate debts, but I have to say that the single most effective “mortgage modification” tool for most borrowers these days is found the United States Bankruptcy Code. So here–with a [...]
Countrywide, by way of its new owner Bank of America, has released general details of its mortgage modification arrangement with the various states’ attorneys general (including California) that sued it last summer alleging predatory lending violations. The details are as of December 1, 2008, and include a Press Release and a Fact Sheet. Quoting from the actual eligibility Fact [...]
