Court Decisions
“Unfairness” prong under state UDAP law satisfied with allegations that owner of HELOC loan proceeded to foreclose without complying with California statute that mandated consideration of loss mitigation before foreclosure, referencing 2023 CFPB guidance on zombie mortgage and the FDCPA.
Allowing borrower’s claim under Maine statute requiring good faith servicing conduct; claim based on servicers’ mishandling of modification requests regarding a 2004 80/20 mortgage.
Granting preliminary injunction against non-judicial foreclosure sale, finding likelihood of success on merits of TILA periodic statement and notice of transfer of ownership claims involving second mortgage.
Refusing to dismiss claims that servicer’s long-term failure to send periodic statements for second mortgage violated TILA, the FDCPA, and state debt collection laws.
Order by default sustaining objection to proof of claim for zombie second mortgage debt.
Foreclosure delays that wrongfully and substantially increased indebtedness and hindered ability to cure default can be basis for laches defense to judicial foreclosure; proceedings involved foreclosure of first mortgage.
Separate dissenting/concurring opinion.
Trial court erred in not considering borrowers’ laches defense based on four-year delay in seeking deficiency claim after foreclosure of first and second mortgages, discussing prejudice element of laches.