twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Lenders Battle Over Loan Titles

Recent litigation involving challenges to mortgage title

Dec. 30, 2012

By SAM GARCIA Mortgage Daily


portrait of Sam Garcia

Mortgage lenders, servicers and trustees are fending off an array of challenges to their title on home loans. Appellate courts are handing down favorable rulings in some instances, while other decisions are stripping them of their security.

American Savings Bank, FSB, was unsuccessful in its appeal of a Greenup Circuit Court decision denying its motion to intervene in a foreclosure action in which the subject real property had been sold more than a year earlier.

The Court of Appeals of Kentucky wrote in its Nov. 16 decision that that the circuit court did not err in denying appellant's motion as untimely. American, which held a second lien on the property, was not notified of a foreclosure filed by the first lien holder, Citizens National Bank, because it's name was incorrect in court documents.

Bank of America, N.A., was added as a defendant to a lawsuit filed by Stanley G. Silva Jr. in his attempt at reformation of a deed of trust and declaratory relief. BofA appealed its unsuccessful attempt at quieting title and establishing the priority of its deed of trust over the plaintiff's.

But the Court of Appeals of California, Sixth District, affirmed the lower court's decision in an uncertified opinion.

A divorce court granted Marilyn Rogers in November 2007 a lien on a property owned by ex-husband William Morgan. The lien served as security for seven years of $3,600 alimony payments owed as part of the divorce decree. Rogers filed a notice of lis pendens the same month has her divorced finalized.

Morgan subsequently took out a first lien with Benefit Bank for $323,000. When Morgan defaulted, Benefit Bank filed a foreclosure action and named Rogers as a defendant. The circuit court ruled in favor of Rogers, affirming her lien position. An Arkansas appeals court overturned the decision, but the state's supreme court affirmed the trial court's decision.

The Court of Appeals of Washington affirmed on Oct. 29 a decision by the trial court in favor of Westar Funding Inc. While a $288,000 mortgage taken out in 1994 by John Sanchez with Washington Mutual Bank should have had priority over Westar's $375,000 loan closed in 2008, the WaMu note had been extinguished through a foreclosure sale then was supposed to restored as a result of a court order -- though the order was never recorded. The trial court determined that the Westar was a mortgagee in good faith and had priority.

Deutsche Bank National Trust Co. won its appeal filed with the Court of Appeals of Georgia contending that the trial court erred by concluding Deutsche was not entitled to reformation of a security deed executed in 2006 on a $105,544 loan from Ameriquest Mortgage Co. to Cheryl B. Hobbs. But the appeals court, however, disagreed with Deutsche's contention that the trial court erred in concluding that Deutsche was not entitled to a judicial foreclosure since it failed to provide notice to Hobbs as required.

Tax Ease Lien Investments 1 LLC and U.S. Bank, N.A., appealed a post-judgment order from the Johnson Circuit Court ruling that the foreclosure sale purchaser American General Home Equity Inc. was required to pay only the amount in excess of its judgment-lien credit on its winning sale. They argue that American General should be required to pay the full amount of its bid for apportionment among the senior lien-holders. The Court of Appeals of Kentucky agreed, and reversed the circuit court's order and remanded the case.

In Murphy v. Fishman, the Court of Special Appeals of Maryland ruled that a lender's deed of trust was invalid because, at the time that the loan was made, the borrower's title to the collateral property was being challenged in a pending lawsuit, Ballard Spahr wrote in a client newsletter. The title to the property was fraudulently conveyed to a son from his mother for no consideration days before she died. The court ruled that "because the lender had constructive notice of the estate lawsuit ... at the time it acquired an interest in the property, it was not entitled to the protections to which a bona fide purchaser is entitled, and was not entitled to foreclose on the property. In sum, the lis pendens provided constructive notice, at the time the mortgage was acquired, of the existing interest in the property, thereby precluding the Lender from protection as a bona fide purchaser."



STANLEY G. SILVA, JR., Plaintiff, Cross-Defendant and Respondent, v. BANK OF AMERICA, N.A., Defendant, Cross-Complainant and Appellant.
Case No. H037032, decision filed Dec. 4, 2012 (Court of Appeals of California, Sixth District).

AMERICAN SAVINGS BANK, FSB, Appellant, v. CITIZENS NATIONAL BANK, Appellee.
Case No. 2011-CA-000325-MR, decided on Nov. 16, 2012 (Court of Appeals of Kentucky).

BENEFIT BANK, APPELLANT, v. MARILYN ROGERS, APPELLEE.
Case No. 12-163,opinion delivered Nov. 8, 2012 (Supreme Court of Arkansas).

CD TRUST UTD 10/22/92, CHRISTOPHER J. KOH and DAVID A. KOH, co-Trustees; and WESTAR FUNDING, INC., a Washington corporation, Respondents, v. QUALITY LOAN SERVICE CORP., Trustee, and DLJ MORTGAGE CAPITAL, INC., through its servicing agent, SELECT PORTFOLIO SERVICING, INC., Appellants.
Case No. 66761-1-I, decision filed on Oct. 29, 2012 (Court of Appeals of Washington, Division One).

DEUTSCHE BANK NATIONAL TRUST COMPANY, v. HOBBS.
Case No. A12A1187, decided on Oct. 9, 2012 (Court of Appeals of Georgia).

U.S. NATIONAL BANK ASSOCIATION AS SUCCESSOR IN INTEREST TO WACHOVIA CUSTODIAN FOR SASS MUNI V DTR, Appellant/Cross-Appellee, v. AMERICAN GENERAL HOME EQUITY, INC; TAMMY CHILDERS N/K/A TAMMY WARD; JOHN CHILDERS; JOHNSON COUNTY, KENTUCKY; CITY OF PAINTSVILLE; TAX EASE LIEN INVESTMENTS 1, LLC., Appellees. AND TAX EASE LIEN INVESTMENTS I, LLC, APPELLANT/CROSS-APPELLEE, v. AMERICAN GENERAL HOME EQUITY, INC; U.S. NATIONAL BANK ASSOCIATION, AS SUCCESSOR IN INTEREST TO WACHOVIA CUSTODIAN FOR SASS MUNI V DTR; TAMMY CHILDERS N/K/A TAMMY WARD; JOHN CHILDERS; JOHNSON COUNTY, KENTUCKY; CITY OF PAINTSVILLE, Appellees.
Case Nos. 2010-CA-002081-MR.1, 2010-CA-002082-MR, rendered Oct. 5, 2012 (Court of Appeals of Kentucky).



Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.


Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.




Sam Garcia founded Mortgage Daily in 1998 and became its full-time publisher in 2000. Prior to his news career he worked in mortgage lending for two decades.

e-mail:
[email protected]


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders