Credit Union Home Equity Mortgages and deeds-of-trust of any nature are generally junior in position to a first mortgage/lien holder. As such, the credit union can and should protect its Home Equity portfolio as securely as possible from collateral damage if a first mortgage proceeds into foreclosure. Question: Will the credit union receive a notice if the […]

Debtors’ residence was in a mortgage foreclosure when, after the foreclosure judgment but prior to the sheriff’s sale, the debtors filed a Chapter 13 bankruptcy. The debtors’ Chapter 13 Plan provided for curing the prepetition arrearage over the term of the Chapter 13 plan and also provided for regular monthly payments on the mortgage after […]

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, however, […]

In this case, an Ohio Bankruptcy Court held that a creditor’s lien noted on an automobile’s certificate of title had priority over a subsequent artisan’s lien obtained by a repair shop. Here, the debtors pledged their automobile as security for a loan. The lien was properly placed on the vehicle’s title. Thereafter, the vehicle was repaired […]

Here, Progressive Credit Union was held liable for more than $158,000.00 when the credit union granted a secured loan to a member and did not pay off a prior lienholder.  The appellate court found the credit union liable to the former lienholder. When Progressive Credit Union granted this loan, it searched the county and state lien records and […]

Here, Dutch Point Credit Union’s perfected security interest was extinquished upon the sale its collateral by a automobile repair facility.    The credit union granted a loan secured by debtor’s Datsun automobile. The credit union properly placed its lien on the vehicle. After the loan was granted, the vehicle was in an accident during the same year.   […]

In this case, the Federal Court held that a guarantor on a loan is not excused from liability even when the principal debtor files bankruptcy. Here, an obligation to the creditor was guaranteed by another party. The principal debtor filed bankruptcy and proposed to “cram down” the obligation to the creditor. Creditor filed an action against the guarantor […]

ISSUE:  Whether a mortgagee bidding total debt at foreclosure sale can recover post-foreclosure advances for repairs and/or improvements through a deficiency action against mortgagor. CONCLUSION: A mortgagee (Lender) cannot pursue a mortgagor for a deficiency arising from post-foreclosure advances expended to repair or improve the premises. When a mortgagee makes a full credit bid for […]

Here, the debtor, a physician, borrowed money from the bank and promised to secure that loan with a pledge of a $50,000 bond that the debtor could not locate at the time of the loan. The bank agreed to loan the money as long as Dr. Bercier brought in the bond at a later date […]

A clerical error at the New York Department of Motor Vehicles did not invalidate a Michigan Credit Union’s lien on collateral pledged as security.   Norway Community Credit Union issued a loan to debtors secured by their Chevrolet Corsica automobile.   [T]he credit union, located in Michigan, properly perfected its security interest in the vehicle […]