Legal News for Credit Union Managers Since 1990
« Incompetency Defense in Collection Suit
Wrongful Transfer of Property »
06
Aug
2020

“Cancelled Mortgage” Enforceable

Here, the Court held that the Credit Union’s mortgage on a member’s real estate, inadvertently marked as “cancelled” when the loan was not paid, was still enforceable.

This mortgage, sold by the Credit Union to the Federal Home Loan Mortgage Corp., was accidentally stamped as “cancelled” or paid. The mortgage was foreclosed upon and the debtors claimed that the “cancelled” mortgage was not enforceable.

The Court held the mortgage could be enforced, was valid and the mortgage sale could proceed. Federal Home Loan Mortgage Corporation v. First Nat’l Bank of Geneva and Belden Credit Union et al. (U.S. District Court, N. D. Illinois, E. D., Case No. 90-C-3322).

Author: Charles R. Harroun, Attorney at Law



This entry was posted on Thursday, August 6th, 2020 at 4:00 am and is filed under Mortgages, National, Secured Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Your comment

Powered by WP Hashcash

  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Nondischargeable Debt: False Financial Statement
    • Credit Union Freezes Member’s Account
    • Reaffirmation, Redemption or Surrender of Collateral
    • State Wage Garnishment Valid For Other States
    • Right of Rescission – Refinance
    • Insurance Lapse: Lift Stay & Repossess Collateral
    • Collection Letter Not Required Before Filing Suit
    • Fraudulent Check Endorsement by Borrower
    • Creditor Required to Release Lien
    • Chapter 13 Plan Cures Arrearage
    • Defective Automobile Lien Enforced

  • Website Builder

2009-2020 Copyright Harroun, P.C. | Credit Union Legal Newsletter powered by WordPress and Uchilla
Subscribe: Entries (RSS) and Comments (RSS)