Legal News for Credit Union Managers Since 1990

Archive for Mortgages


16
Apr
2021

Reaffirmation, Redemption or Surrender of Collateral

In some jurisdictions, but not in Michigan, Bankrupt debtors must either redeem, reaffirm or surrender the collateral and cannot keep the collateral and otherwise continue making payments. When a debtor files a Chapter 7 bankruptcy, the Bankruptcy Code provides that the debtor(s) must either: 1) “reaffirm” their secured obligations and keep the collateral pledged on the […]

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14
Apr
2021

Right of Rescission – Refinance

Federal Right of Rescission applies to additional funds advanced with refinance.   The Truth in Lending Act (TILA) was adopted by Congress to promote the informed use of consumer credit. Consumers may rescind a credit transaction within three business days of its consummation where the lender acquires a mortgage interest in the debtor’s principal dwelling as security. […]

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06
Apr
2021

Chapter 13 Plan Cures Arrearage

Debtors’ residence was in a mortgage foreclosure when, after the foreclosure judgment but prior to the sheriff’s sale, the debtors filed a Chapter 13 bankruptcy. The debtors’ Chapter 13 Plan provided for curing the prepetition arrearage over the term of the Chapter 13 plan and also provided for regular monthly payments on the mortgage after […]

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02
Apr
2021

Protecting Home Equity Mortgage Portfolios

Credit Union Home Equity Mortgages and deeds-of-trust of any nature are generally junior in position to a first mortgage/lien holder. As such, the credit union can and should protect its Home Equity portfolio as securely as possible from collateral damage if a first mortgage proceeds into foreclosure. Question: Will the credit union receive a notice if the […]

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31
Mar
2021

Contaminated Mortgage Property

In this case, Wachovia Bank of North Carolina held a mortgage on environmentally contaminated property. The mortgage went into default and the bank foreclosed on the property, purchasing the property at the sheriff’s sale. The bank then sold the property to purchasers who later sued the bank since the property was contaminated. The Comprehensive Environmental […]

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05
Mar
2021

Michigan Foreclosure Deficiency Defined

ISSUE:  Whether a mortgagee bidding total debt at foreclosure sale can recover post-foreclosure advances for repairs and/or improvements through a deficiency action against mortgagor. CONCLUSION: A mortgagee (Lender) cannot pursue a mortgagor for a deficiency arising from post-foreclosure advances expended to repair or improve the premises. When a mortgagee makes a full credit bid for […]

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25
Feb
2021

Defective Notary: Mortgage Void

Here, the U.S. Bankruptcy Court ruled that a creditor’s recorded mortgage was invalid simply because the notary’s acknowledgement did not recite who appeared before the notary and acknowledged execution of the mortgage. In this case, debtors borrowed more than $148,000 from Calumet National Bank and signed a mortgage on their real estate securing the debt. […]

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10
Feb
2021

Debt Cancellation Insurance

General Motors Acceptance Corporation issued a loan to debtor secured by debtor’s new automobile. The debtor purchased disability insurance through GMAC which provided that payments on the loan would be made to GMAC by the insurance company if the debtor became disabled. Debtor did, indeed, become disabled when she suffered a stroke. A claim was […]

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09
Feb
2021

Credit Union’s Failure to Payoff Existing Mortgage

Here, the debtor, a former police officer, applied for and was approved for a loan from Hartford Police Federal Credit Union for $150,000. The debt was intended to be utilized to pay off an existing second mortgage on debtor’s residence and for the purchase of a balloon business. At the closing on the credit union’s […]

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05
Feb
2021

Fatally Defective Mortgage Acceleration Notice

This Court ruled that the lender’s Notice of Mortgage Acceleration Notice was fatally defective.   Here, Gerardo Pico borrowed money from First Union National Bank of Florida and secured the loan with a mortgage on his real estate.   The loan was two months in default and the bank notified debtor that he must cure […]

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« Previous Entries
  • 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

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