Seventh Circuit Holds That Tax Lien With Misspelled Name Was Enforceable Against Alleged Bona Fide Purchaser Without Notice

The United States Court of Appeals for the Seventh Circuit recently found that the United States of America could foreclose on a tax lien despite the fact that it had misspelled the debtor’s name in the lien and, due to this misspelling, the purchaser of the property was unaware of the lien.  See United States v. Z Inv. Properties, LLC, 921 F.3d 696 (7th Cir. 2019).  

The Third Circuit Ruled That a Condominium Association’s Gender-Segregated Pool Schedule Was Unlawful Under the Fair Housing Act

On April 22, 2019, the United States Court of Appeals for the Third Circuit held that a condominium association’s gender-segregated pool schedule policy discriminated against women at a predominantly Orthodox Jewish community in Lakewood, New Jersey. See Curto v. A Country Place Condo. Ass'n, Inc., 2019 WL 1758320 (3d Cir. Apr. 22, 2019).  The plaintiffs, Maria Curto, Steve Lusardi and Diana Lusardi (collectively, “Plaintiffs”), brought an action against A Country Place Condominium Association, Inc. (the “Association”), alleging that the Association’s policy of gender-segregated swimming hours at a community pool violated the Fair Housing Act, 42 U.S.C. § 3604(b) (“FHA”). 

New Jersey Appellate Court Dismisses Lender’s Deficiency Action When Required Notice Was Not Recorded Before Lender Filed Complaint, Despite Purportedly Timely Mailing

The New Jersey Appellate Division recently held that a lender’s deficiency action was barred because the Notice of Proposed Deficiency Action was not recorded by the county clerk until five days after the lender’s deficiency complaint was filed, even though the lender had mailed the Notice to the clerk two weeks earlier.  See Foreclosed Assets Sales & Transfer P’ship v. Strauss, 2019 WL 1092703 (N.J. Super. Ct. App. Div. Mar. 8, 2019). 

New Jersey Federal Court Denies Motion to Dismiss RESPA Claim Based on Alleged Kickbacks Between Lender and Title Agent

The United States District Court for the District of New Jersey recently denied a lender’s motion to dismiss a putative class action complaint in which plaintiffs alleged violations of the Real Estate Settlement Procedures Act (“RESPA”) arising out of an alleged kickback scheme between the lender and the title agent.  See Conover v. Patriot Land Transfer, LLC, 2019 WL 397978 (D.N.J. Jan. 31, 2019).

California Appellate Court Holds Insured Not Entitled to Coverage for Easement When Policy Excepted Agreement That Included Easement

A California appellate court recently affirmed that an insured property owner was not entitled to coverage for a neighbor’s easement running across the insured property because the policy excepted “matters contained in” a Shared Road Maintenance Agreement, and this Agreement described the easement rights.  See Beaudin v. Stewart Title Guar. Co., 2019 WL 422208 (Cal. Ct. App. Feb. 4, 2019), reh’g denied (Feb. 21, 2019), review filed (Mar. 13, 2019). 

Wisconsin Appellate Court Finds Lender Can Proceed With Foreclosure Despite Previous Stipulation Stating Loan Was Paid

A Wisconsin appellate court recently reversed a trial court’s order granting summary judgment for the homeowners and held that a lender’s foreclosure claim could proceed, despite the fact that the lender’s predecessor previously had filed a stipulation dismissing a foreclosure “due to payoff of the loan.”  See Deutsche Bank National Trust Company, v. Buboltz, et al., 2019 WL 549771 (Wis. Ct. App. Feb. 12, 2019).  

California Appellate Court Holds Insured Lender Not Entitled To Coverage in Action Regarding Validity of Subdivision

A California Appellate Court recently affirmed that an insured lender was not entitled to coverage for an action in which a party challenged the validity of a subdivision, and that a court’s determination that the subdivision was invalid did not render title unmarketable under the policy.  See Northern California Comm. Development Corp. v. First American Title Ins. Co., 2019 WL 1397040 (Cal. Ct. App. Mar. 28, 2019).