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 […]

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 […]

This 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 repay the […]

In this case, the Court addressed whether the prohibition against transfers to creditors prior to the bankruptcy filing begins from the date of transfer, or runs backward from the date the bankruptcy is filed. Here, the creditor obtained a judgment lien against the debtor’s property 90 days before the date of the filing of the debtor’s […]

An Erroneous legal description in a Credit Union mortgage was fatal to enforcement of mortgage. Here, Electric Boat Community Federal Credit Union (EBC), granted a loan to Louis Salerno (Salerno) that was supposed to be secured by a mortgage on the debtor’s real estate. In the mortgage document, however, the credit union inadvertently identified the real estate […]

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 […]

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 […]

Federal Regulation B entitles borrower to copy of real estate appraisal. Regulation B Amendments define the coverage of the appraisal requirements to be loans secured by a lien on a residential structure containing one-to-four units.  The regulation provides alternative methods of compliance with the law. Creditors may choose to automatically provide a copy of appraisal […]

Defective Notice of Right to Cancel results in Truth in Lending Violation and extends borrowers right to rescind. Here, New Maine National Bank granted a loan to the debtors secured by debtors’ residence. At the closing of the loan, the loan officer supplied the debtors with a “Notice of Right to Cancel” (hereinafter “Notice”). Pursuant to the […]

In this case, a jury awarded the debtor $46,225 plus punitive damages of $100,000. Here, Pioneer Savings loaned $39,000 to Lannigan secured by the debtor’s real estate. The initial interest rate was “8 1/2%”. The loan documentation provided that Pioneer: … may hereafter decrease said interest rate and may also increase the rate upon giving […]