Mortgage

Aug 24, 2018

EDVA: Widow’s foreclosure claims don’t show breach of contract

A plaintiff allegedly trying to assume the loan obligations on a home owned by her late husband did not plausibly allege facts to support her breach-of-contract claims against the lender. The entity that conducted the foreclosure sale was dismissed as a fraudulently-joined, nominal party. Background In 2008, Plaintiff Maryfrances Coon conveyed to her husband, Stanley, […]

Aug 17, 2018

EDVA: FDCPA claim viable against lender, servicer

Despite skepticism about a plaintiff-debtor’s ultimate chances, the court declined to dismiss his Fair Debt Collection Practices Act claim alleging that his mortgage lender and loan servicer intentionally lied to him about whether a home foreclosure was scheduled. Background In 2005, Plaintiff George Yarid purchased his home with a mortgage. The deed of trust was […]

Jun 3, 2018

WDVA: No sovereign immunity in tax-lien discharge suit

A bank’s suit seeking a determination that tax liens against a foreclosed property must be discharged was a quiet title action for which the United States has waived sovereign immunity. Background The Knapps, who owned real property in Richlands, Virginia, executed a credit line deed of trust for the benefit of Plaintiff First Sentinel Bank, […]

Apr 27, 2018

4th Cir.: Not all mortgage loans require LPMI disclosures

In a class action against Bank of America for failure to provide information regarding lender-paid mortgage insurance, the district court did not err in concluding that the Plaintiffs’ type of mortgage loans didn’t require such disclosures under the Homeowners Protection Act. Background Each Plaintiff in this case obtained a 30-year, fixed-rate mortgage loan between 2007 […]

Apr 23, 2018

Va. Cir.: Title challenge must be separate claim, not defense

In an action for unlawful detainer, defendants occupying their deceased mother’s home could not effectively challenge title by affirmative defense only; any title disputes needed to resolved by separate lawsuit or counterclaim. Background Sometime prior to November 28, 2016, at least one of the Defendants began occupying the residential property at issue. The property was […]

Apr 16, 2018

EDVA: Party thwarting jurisdiction not “fraudulently joined”

Because the plaintiff stated a claim against the only defendant to share her citizenship – the substitute trustee that executed foreclosure on her home – the court lacked diversity jurisdiction, and remand to state court was required. Background Plaintiff Norma Gibbs’s claims stem from the foreclosure of a home. Her husband, Walter, purchased the property […]

Mar 26, 2018

Va. Cir.: Voluntary payment defeats fee challenge

A borrower who paid what she considered unreasonable attorneys’ fees to her noteholder, in anticipation of her impending sale of the property securing the note, could not recover fees she had paid voluntarily. To the extent the borrower argued that the time constraint forced her to pay she should have sought a decision from the […]

Mar 19, 2018

EDVA: “Astounding allegations” sustain 11-count complaint

In October 2015, wind and rain damaged Plaintiff Constance Moss’s home. Moss’s homeowner’s insurer soon issued a claim check for over $15,000. In a move she has lived to regret, Moss sent the check to her mortgage company, Defendant Manufacturers & Traders Trust Co. M&T kept the money, but used it neither to repair her […]