Unauthorized Disbursements of Lender Loan Proceeds

One result of the “subprime fallout” is that lenders are taking more care to ensure that their loan proceeds are not diverted upon escrow close. What about those loans that have already closed in violation of the Lender’s instructions or where the Lender already foreclosed? The Court in the very recent case … Continue reading

Eviction Notices Under New Federal Law

There is some confusion re the effect of the recently enacted federal law entitled Protecting Tenants at Foreclosure Act (PL 111-22), and the impact it has on the eviction notice that is required to be provided to tenants after a foreclosure. Many people believed that the new law mirrored recent California legislation that increased … Continue reading

In re Wardrobe – Relief From Stay to Pursue State Court Claims Limited to the Causes of Action Pled at the Time of Motion

(as published in the United Trustees Association Quarterly, Summer 2009)
A bankruptcy filing can be an effective tool for a debtor-defendant in a state court action to avoid a trial. The automatic stay of 11 USC 362 immediately stops the state court litigation upon the filing. However, the filing of the bankruptcy by a defendant … Continue reading

Consumer Claims against Lenders are Proliferating – SLG Pares Back Claims

The following case is a case that evidences the wide range of actions that are raised to challenge residential loans, using everything from TILA and RESPA to Fraud and Unfair Business Practice Claims. SLG moved to dismiss and the claims were pared back, eventually resulting in a negotiated settlement and quick dismissal of the matter … Continue reading

CLIENT ALERT! Passage of SB 1137 (Foreclosure Relief Bill)

As many of you know, SB 1137 was recently enacted. The provisions are applicable to loans that were originated between January 1, 2003 and December 31, 2007, when security is taken on a borrower’s principal residence. There are many facets to the bill. The most important is that effective September 8, 2008, any lender … Continue reading

In re Fridley: No Shortcuts in the Race to Early Discharge

At the beginning of a chapter 13, the playing field is essentially level. The chapter 13 Trustee and the creditors have an equal opportunity to review the debtor’s schedules and object to a debtor’s plan, making sure the debtor meets the specific requirements outlined by the Bankruptcy Code and applicable case law. Among other considerations, … Continue reading

Lender Review Considerations – Mortgage Fraud

Disclaimer: (The following contains general principles of law that cannot be applied to every case and is based on California law. In the event that you encounter issues covered in this outline, you should review the appropriate response with your counsel)
(For more information, including in-house seminars, contact: Spencer Scheer @
There … Continue reading

Lender Privacy Issues: Identity Theft Claims

There are many recently enacted statutes that require that regulated lenders take action to protect confidential information of the customer/borrower. Further obligations have been imposed to mandate that covered lenders take action to ensure that their “service providers”/vendors also do so. Failure to comply can result in fines, penalties and lawsuits.
Identity theft claims are becoming … Continue reading