Legal News for Credit Union Managers Since 1990

Archive for Mortgages


10
Aug
2023

Debt Cancellation Insurance

General Motors Acceptance Corporation issued a loan to debtor secured by debtor’s new automobile. The debtor purchased disability insurance through GMAC which provided that payments on the loan would be made to GMAC by the insurance company if the debtor became disabled. Debtor did, indeed, become disabled when she suffered a stroke. A claim was […]

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09
Aug
2023

Credit Union’s Failure to Payoff Existing Mortgage

Here, the debtor, a former police officer, applied for and was approved for a loan from Hartford Police Federal Credit Union for $150,000. The debt was intended to be utilized to pay off an existing second mortgage on debtor’s residence and for the purchase of a balloon business. At the closing on the credit union’s […]

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31
Jul
2023

Fatally Defective Mortgage Acceleration Notice

This Court ruled that the lender’s Notice of Mortgage Acceleration Notice was fatally defective.   Here, Gerardo Pico borrowed money from First Union National Bank of Florida and secured the loan with a mortgage on his real estate.   The loan was two months in default and the bank notified debtor that he must cure […]

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26
Jul
2023

Chapter 13 Bankruptcy Home Equity Mortgage Modifications

Question: Are credit union Home Equity and/or Second Mortgages subject to modification by a debtor’s Chapter 13 Plan? Answer: Yes. In the U.S. Bankruptcy Courts located within the Sixth Circuit Court of Appeals, and applicable to the Federal Bankruptcy Courts located within the State of Michigan, this issue is currently governed by the rulings in the case […]

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25
Jul
2023

Sale of Credit Union Collateral: “AS IS”

In the case of David Scoggin vs. Listerhill Employees Credit Union, the Alabama Supreme Court upheld a lower court ruling in favor of the credit union. Here, the credit union repossessed a member’s Dodge Dynasty and sold the vehicle at auction for the highest bid of $5,000. The vehicle’s odometer displayed mileage of 18,334 miles, […]

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20
Jul
2023

Contaminated Mortgage Property

In this case, Wachovia Bank of North Carolina held a mortgage on environmentally contaminated property. The mortgage went into default and the bank foreclosed on the property, purchasing the property at the sheriff’s sale. The bank then sold the property to purchasers who later sued the bank since the property was contaminated. The Comprehensive Environmental […]

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05
Jun
2023

Fraudulent Mortgage Application

In this case, two debtors applied for and closed on a mortgage with American General Finance, Inc. (hereinafter “American General”). The debtors represented to American General that they only had one mortgage on their residence. American General intended to grant the debtors a loan secured by a second mortgage; American General obtained a title search […]

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02
Jun
2023

Michigan Supreme Court: Secured Loan Loss Payable Clause

The Michigan Supreme Court has held that the Credit Union is protected as a secured party under the “loss payable” clause of an insurance policy, even if the Credit Union member burned the collateral and made false statements to the insurance company on its claim of loss. Here, the Credit Union member executed an installment note with State Employees Credit Union secured […]

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01
Jun
2023

Defective Notary: Mortgage Void

Here, the U.S. Bankruptcy Court ruled that a creditor’s recorded mortgage was invalid simply because the notary’s acknowledgement did not recite who appeared before the notary and acknowledged execution of the mortgage. In this case, debtors borrowed more than $148,000 from Calumet National Bank and signed a mortgage on their real estate securing the debt. […]

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16
Jan
2023

Right to Cancel – Truth-In-Lending Violation

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 […]

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« Previous Entries
  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • False Application: Nondischargeable Debt
    • Truth in Lending Violation: Collateral Not Identified
    • Collateral Removed From State – Renewal of Perfected Lien
    • Credit Union & Its Attorney Violate Bankruptcy Stay
    • Credit Union Employee Policies
    • Wrongful Repossession & Conversion: Creditor Held Liable
    • “Investment” Information Provided to Member
    • Nonischargeable Cash Advances
    • Parental Liability: Minor’s Forged Check
    • Debt Cancellation Insurance
    • Credit Union’s Failure to Payoff Existing Mortgage

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