Saturday, June 11, 2011

Register of Deed Refuses to Aceept Documents

The South Essex register of deeds, who has been on a crusade to hold major banks accountable for their role in the home mortgage crisis, is now turning his attention to what he and others say are forged mortgage documents being pumped out by lenders seeking to back up foreclosures.

Yesterday, he refused to accept two documents purportedly signed by "Linda Green" — a name that appears on nearly 300 other mortgage documents already on file at the South Essex registry and on thousands of other mortgage documents being filed around the country.

Tuesday, June 7, 2011


The Eleventh Circuit Court of Appeals, in Meyers v. Toojay's Mgmt. Corp., joined two other circuits in holding that private employers have the right to deny employment to applicants on the basis of their filing for bankruptcy. 

In re Henderson,

2011 WL 1467934 (Bankr. D. Idaho, April 18, 2011) (Pappas)

A Chapter 13 debtor with no calculated projected disposable income, the applicable commitment period need not propose a minimum duration of a plan; Kagenveama still has some validity

Bye Bye Student Loans?

On May 26th, Sen. Durbin (D-IL) introduced S.1102 a bill to amend Title
11 with respect to certain exemptions to discharge in bankruptcy.

The bill is Durbin's previously introduced, in other Congresses, student loan in discharge bill.

According to Durbin's statement, the bill restores fairness in student lending by treating privately issued student loans in bankruptcy the
same as other types of private debt.

U.S. Senators Durbin was joined in the Senate by Sens. Whitehouse (D-RI) and Franken
(D-MN) with a companion measure (HR 2028) in the House sponsored by Reps. Cohen (D-TN), Davis (D-IL), Miller (D-CA) and Conyers (D-MI).


If you really want a loan modification turn in the requested materials to creditor/plaintiff's counsel at the minimum  of 1 week prior to the modification!   Most lenders will not review it on the spot if you decide to just show up with the documents.   Think about it would you really want someone doing your taxes, surgery ..... while you sat there jabbering away a t them.   No you want them to be able to concentrate on what they are doing!

You need your last tax return, 30 days worth of pay stubs and bank statements, a hardship letter, the companies financial affvdt, the HAMP form, the 4506T-EZ, P &L if you are self employed.   These are a minimun folks.

US Bank




Am Gen


Fannie Mae Issues New Servicing Standards for Delinquent Mortgages

During the first 120 days of delinquency, homeowners will be contacted both verbally and in writing to complete a mortgage modification or other solution to remain in the home, or enter into an arrangement to exit the home without a foreclosure. Fannie Mae says contacting homeowners early in the default process is one of the most important factors in reaching a resolution that avoids foreclosure.

For loans that do not qualify for a loss mitigation option, Fannie Mae has updated the maximum number of allowable days for completing foreclosure in each jurisdiction. The new timelines are effective for all loans referred to a foreclosure attorney as of January 1, 2011.

Compensatory fees will be assessed for failing to meet the specified timeframe, and will be based on the unpaid principal balance of the mortgage loan, the applicable pass-through rate, the length of the delay, and any additional costs that are directly attributable to the delay.

The jurisdiction-specific foreclosure timelines have not yet been published but will be made available on the GSE’s business site on June 10th.

Hamilton v Greenich Investors 2DCA 6/1/11

The Court of Appeal of the State of California, Second District, recently confirmed that if a borrower fails to "schedule" or disclose claims against a creditor in the borrower's bankruptcy proceedings, the borrower is barred from litigating the undisclosed claims against the creditor in subsequent proceedings.

The plaintiff-borrower defaulted on his home loan. He entered into a forbearance agreement with the servicer of the loan, Select Portfolio Servicing, Inc. ("SPS"), but then re-defaulted. SPS notified the borrower that his loan had been transferred to Greenwich Investors ("Greenwich").

The borrower then filed for bankruptcy, making no mention of a possible claim against Greenwich. The borrower's bankruptcy workout plan called for borrower to make regular payments to Greenwich. The borrower again defaulted, and Greenwich initiated nonjudicial foreclosure proceedings.

The borrower then filed suit against Greenwich, alleging breach of contract, fraudulent and negligent misrepresentation, and violation of foreclosure statutes. These claims arose from Greenwich's alleged failure to acknowledge the forbearance agreement, as well as Greenwich's alleged failure to abide by the notice provisions of the relevant foreclosure statute, among other alleged statutory violations.

Greenwich demurred to the borrower's complaint, on the grounds that the borrower was barred from raising his claims by the doctrines of res judicata and estoppel. The trial court sustained the demurrer, and the foreclosure sale took place. The borrower appealed, but the appellate court upheld the trial court's decision.

The appellate court's decision to sustain the lower court hinged on the application of the rule established in Oneida Motor Freight, Inc., v.
United Jersey Bank, 848 F.2d 214 (3d Cir. 1988). As you may recall, the court in Oneida Motor Freight stated that a party's failure to disclose litigation claims likely to arise in a nonbankruptcy context "triggers application of the doctrine of equitable estoppel, operating against a subsequent attempt to prosecute the action." Id. at 417.

The borrower argued that cases decided subsequent to Oneida Motor Freight provided that the rule applied only where the nondisclosure was accompanied by bad faith. The court disagreed because, among other reasons, the cases cited by borrower did not involve a subsequent lawsuit against an entity that had been a creditor in the bankruptcy proceedings.

As such, in the other cases, the debtor did not benefit from the nondisclosure. As the cases the borrower relied upon by the borrower were all distinguishable from the matter at hand, the court concluded that the Oneida Motor Freight rule should apply. Therefore, the borrower was barred from litigating the claims he failed to disclose in his bankruptcy proceedings.

However, the borrower's statutory claims (lack of notice, failure to provide a loan modification) arose after the bankruptcy proceedings, and thus were not barred by the Oneida Motor Freight rule. However, the court found no merit in either claim.

Monday, June 6, 2011

ABA is Unfair!

The above article angers me to no end.   I have a child with ADHD the girl is entitled to accommodations under the ADA. 
When I was in college and law school "the system' was a kinder and gentler place.   I know people who received extra time on college exams, law school exams, GRE, SAT, LSAT, Bar Exam........  for a variety of reasons.   None of them ever were rejected or had to sue for their rights.   There was a gentleman in my school, Thomas Cooley Law School- who used a machine in the library to read the tests and books to him because he was blind, and another student used it because they had dyslexia.   One of my study partners took his exams in a private room with a proctor because of his anxiety issues. 
I will be the first to tell you we do not need more lawyers or law schools-- but everyone should be given an equal change, and some times that means they need extra time, more breaks, or a quieter environment.