Legal News for Credit Union Managers Since 1990

Archive for Mortgages


05
Jan
2021

Chapter 13 Bankruptcy Home Equity Mortgage Modifications

Question: Are credit union Home Equity and/or Second Mortgages subject to modification by a debtor’s Chapter 13 Plan? Answer: Yes. In the U.S. Bankruptcy Courts located within the Sixth Circuit Court of Appeals, and applicable to the Federal Bankruptcy Courts located within the State of Michigan, this issue is currently governed by the rulings in the case […]

Continue reading » No comments

02
Jan
2021

Sale of Credit Union Collateral: “AS IS”

In the case of David Scoggin vs. Listerhill Employees Credit Union, the Alabama Supreme Court upheld a lower court ruling in favor of the credit union. Here, the credit union repossessed a member’s Dodge Dynasty and sold the vehicle at auction for the highest bid of $5,000. The vehicle’s odometer displayed mileage of 18,334 miles, […]

Continue reading » No comments

31
Dec
2020

Mobile Home Lien Superior to Real Estate Mortgage

In this case, the Colorado Court of Appeals held that the credit union’s lien on a borrower’s mobile home was superior to a mortgage held on the real estate upon which the mobile home was permanently built. Here, ENT Federal Credit Union (hereinafter “ENT”) granted a loan to Alice Ripley secured by her mobile home. The […]

Continue reading » No comments

24
Dec
2020

Michigan’s Right of Rescission Rule

Right of Rescission: Michigan Court Ruled Each Borrower Must Receive Two Notices of Right to Cancel. The Michigan Court of Appeals has held that a mortgagor who is entitled to a notice of the right to rescind is in fact entitled to two copies of that notice for each borrower. In this case, each borrower […]

Continue reading » No comments

10
Dec
2020

Michigan Supreme Court: Secured Loan Loss Payable Clause

The Michigan Supreme Court has held that the Credit Union is protected as a secured party under the “loss payable” clause of an insurance policy, even if the Credit Union member burned the collateral and made false statements to the insurance company on its claim of loss. Here, the Credit Union member executed an installment note with State Employees Credit Union secured […]

Continue reading » No comments

06
Nov
2020

Nondischargeable Refinanced Debt

In this case, a California Appellate Panel rendered an opinion favoring creditors who refinance a debt in reliance upon a fraudulent financing statement, even though no new money is advanced. In this case, debtors had an existing loan with the bank and were unable to make the agreed payments. Debtors requested an extension of time to […]

Continue reading » No comments

02
Nov
2020

1099-C Reporting: Debt Cancellation

The Omnibus Budget Reconciliation Act includes a section requiring certain financial institutions, including credit unions, to report discharges of indebtedness of $600 or more during any calendar year to the IRS on Form 1099-C, entitled “Cancellation of Debt”. The IRS has published regulations implementing the law requiring credit unions and other financial institutions to report annually on […]

Continue reading » No comments

27
Oct
2020

Credit Union Taking Possession Must Evict Occupants

Following the Credit Union’s purchase of the house, two occupants residing in the house at the time of the purchase were given notice that if they did not voluntarily move from the premises, they would be evicted.   Here, the residents did not move out, and a complaint for eviction was filed with the court.   The court […]

Continue reading » No comments

22
Oct
2020

Fatally Defective Foreclosure Acceleration Notice

Bank-Fund Staff Federal Credit Union held a mortgage on debtors’ real estate.  The loan was in default and the credit union sought to foreclose and obtain possession of the property. The credit union initiated foreclosure proceedings and sent a Notice of Foreclosure Sale to debtors. The foreclosure notice, however, erroneously stated that the members did […]

Continue reading » No comments

14
Oct
2020

Embezzlement From Credit Union – Nondischargeable Debt

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

Continue reading » No comments

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

    • Statement of Financial Affairs: Discharge Denied
    • Holder in Due Course – Checks
    • Reasonable Reliance on Debtor’s Loan Application
    • $100,000.00 Award to Employee
    • Chapter 13 Bankruptcy Home Equity Mortgage Modifications
    • Substantial Abuse: Bankruptcy Dismissed
    • Sale of Credit Union Collateral: “AS IS”
    • Mobile Home Lien Superior to Real Estate Mortgage
    • Deposit Set-Off Not Allowed
    • Credit Union Board-Member Suit Dismissed
    • Collateral: Embezzled Funds

  • Website Builder

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