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Fla. Court (11th Jud Cir) Holds Borrower’s Heir Could Raise Statute of Limitations Defense in Foreclosure

The Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida recently dismissed a second foreclosure complaint, filed more than five years after the initial complaint and alleging the same incident of default, as barred by the statute of limitations. In so ruling, the Court also held that the borrower’s daughter and […]
Christopher P. Hahn

Source: Consumerfsblog – Fla. Court (11th Jud Cir) Holds Borrower’s Heir Could Raise Statute of Limitations Defense in Foreclosure

7th Cir. Holds Debt Collectors Did Not Violate FDCPA by Demanding Prejudgment Interest Under Wisconsin Law

The U.S. Court of Appeals for the Seventh Circuit recently held that two debt collectors were entitled to demand payment for both principal amounts owed and interest under Wisconsin law. Therefore, the Court held, the debt collectors’ dunning letters demanding the principal sums owed and 5 percent per annum interest did not violate the federal […]
Jeffrey Karek

Source: Consumerfsblog – 7th Cir. Holds Debt Collectors Did Not Violate FDCPA by Demanding Prejudgment Interest Under Wisconsin Law

9th Cir. Rejects Debtor’s Attempt to Avoid SBA Judgment by Disclaiming Inheritance

The U.S. Court of Appeals for the Ninth Circuit recently affirmed the district court’s judgment in favor of the U.S. Small Business Administration in a Federal Debt Collection Procedures Act (FDCPA) lawsuit the SBA filed against a loan guarantor to satisfy a default judgment assigned to it after the guarantor disclaimed an inheritance to avoid […]
Amy Jonker

Source: Consumerfsblog – 9th Cir. Rejects Debtor’s Attempt to Avoid SBA Judgment by Disclaiming Inheritance

Fla. App. Court (4th DCA) Holds Post-Foreclosure Deficiency Action Not Affected By Publication Service in Foreclosure

The District Court of Appeal of the State of Florida, Fourth District, recently held that a creditor may obtain a post-foreclosure deficiency judgment against a borrower when the borrower was personally served with process in the post-foreclosure deficiency action, and the fact that the foreclosure court only acquired in rem jurisdiction due to service by […]
Hector E. Lora

Source: Consumerfsblog – Fla. App. Court (4th DCA) Holds Post-Foreclosure Deficiency Action Not Affected By Publication Service in Foreclosure

Illinois App. Court (1st Dist) Holds Potential Chicago Foreclosure Tenant Ordinance Violation Precluded Eviction

The Appellate Court of Illinois, First District, recently reversed a summary judgment ruling in favor of a mortgagee on its post-foreclosure forcible entry and detainer claim, finding genuine disputes as to material facts where the tenant presented evidence that she was a qualified tenant under the Chicago Protecting Tenants in Foreclosed Rental Property Ordinance, and […]
Ernest Wagner

Source: Consumerfsblog – Illinois App. Court (1st Dist) Holds Potential Chicago Foreclosure Tenant Ordinance Violation Precluded Eviction

9th Cir. Holds Mortgagee’s ‘Sold Out Second’ Claim Not Barred by California’s 4-Year Statute of Limitations

The U.S. Court of Appeals for the Ninth Circuit recently reversed a ruling that disallowed an unsecured creditor’s claim filed in a California bankruptcy court based on the forum state’s statute of limitations. In so ruling, the Ninth Circuit held that, although courts typically apply the forum state’s statute of limitations if the contract is […]
Eric Tsai

Source: Consumerfsblog – 9th Cir. Holds Mortgagee’s ‘Sold Out Second’ Claim Not Barred by California’s 4-Year Statute of Limitations

8th Cir. Holds ‘Citizen’ Does Not Equal ‘Resident’ Under CAFA’s ‘Local Controversy’ Exception

The U.S. Court of Appeals for the Eighth Circuit recently held that “citizen” is not synonymous with “resident” under the Class Action Fairness Act (CAFA), 28 U.S.C. 1332(d), such that the class action lawsuit at issue could not be remanded to state court under CAFA’s “local controversy” exception but rather should remain in federal court. A copy of […]
Amy Jonker

Source: Consumerfsblog – 8th Cir. Holds ‘Citizen’ Does Not Equal ‘Resident’ Under CAFA’s ‘Local Controversy’ Exception

8th Cir. Upholds Exclusion of ‘Similar Borrower’ Testimony in 8-to-1 Punitive Damages Award Case

The U.S. Court of Appeals for the Eighth Circuit recently affirmed a punitive damages award in an approximately 8-to-1 ratio to compensatory damages to a borrower who sued her mortgage loan servicer for alleged common law invasion of privacy and for allegedly violating the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act […]
Hector E. Lora

Source: Consumerfsblog – 8th Cir. Upholds Exclusion of ‘Similar Borrower’ Testimony in 8-to-1 Punitive Damages Award Case

11th Cir. Holds Failure to File Proof of Claim in Receivership Does Not Extinguish Security Interest

The U.S. Court of Appeals for the Eleventh Circuit recently held that a court cannot extinguish a secured creditor’s state-law security interests for failure to file a proof of claim during the administration of an equity receivership over entities involved in a Ponzi scheme. A copy of the opinion in Securities and Exchange Commission v. […]
Hector E. Lora

Source: Consumerfsblog – 11th Cir. Holds Failure to File Proof of Claim in Receivership Does Not Extinguish Security Interest

Stating Intent Not to Sue in Letter Collecting ‘Time-Barred’ Debt Violates FDCPA Without Proper Disclosures, Says 7th Cir.

A debt buying company’s letter to collect a debt subject to the defense of an expired limitations period was found to violate the federal Fair Debt Collection Practices Act because it failed to disclose that 1) a payment or promise can revive the limitations period; and, 2) the law limits or prohibits the debt collector […]
Donald Maurice

Source: Consumerfsblog – Stating Intent Not to Sue in Letter Collecting ‘Time-Barred’ Debt Violates FDCPA Without Proper Disclosures, Says 7th Cir.