Mortgage Servicing Under the Microscope

The judge looked closely at the creditor’s accounting records and found the usual fright. Having looked, the court held secured creditor  USDA in contempt of the automatic stay and the confirmation order for its loan servicing blunders. Two years after the debtor’s discharge, after an evidentiary hearing, and a written opinion, the debtor still didn’t […]

Homeowners Face Down The Mortgage Servicer Over Their Request For Information

  The homeowners beat the bank in the first round of RESPA/FDCPA litigation, upholding the private right of action under Reg. X. The case is Rios v. Rushmore, from the Southern District of Florida. The homeowners alleged that Rushmore Loan Management Services failed to adequately respond to their Notice of Error pursuant to 12 U.S.C. […]

Bankruptcy as Means to Keep the House

Homeowners  resort to finally seeing a bankruptcy lawyer as the road to keeping a house that’s in foreclosure. They are often not sure just how bankruptcy will accomplish this, but they are resolute that keeping the house is the centerpiece of their bankruptcy. A capable lawyer can tell the client how that might be done through […]

How Lien Stripping Differs From Lien Avoidance

The draft of a lien avoidance motion my paralegal presented me was garbled.  Lien stripping concepts sat next to a cite to §522. I doubt my staff is alone in missing the critical differences between lien stripping under (or despite) §1322 and lien avoidance pursuant to §522(f). So let’s try some compare and contrast on […]

Hammered By Rule 3002.1

To my mind, Rule 3002.1 is the most powerful, most under-utilized tool in our tool box. And its power is coming to the fore as Chapter 13’s filed in 2011 and 2012 wind to a close. Don’t let your home-owning client leave Chapter 13 without a determination that they are current Or, if they are […]

Bankruptcy Sales Free And Clear

Now that the real estate market in my area is improving, we are dusting off another of our little used skills to effect sales of property during a Chapter 13:  the sale free and clear of liens. The ability to sell property subject to disputes and continue the fight over a bank account, rather than […]