Texas Federal Court Holds Individual Could Not Bring RESPA Claim for Loan Issued to Her LLC

The United States District Court for the Western District of Texas recently dismissed an individual plaintiff’s RESPA claims because the borrower under the loan was actually her LLC.  See Cocchia v. LendingHome Funding Corp., 2020 WL 1879223 (W.D. Tex. Apr. 15, 2020).  Plaintiff purchased the subject property “with an LLC, . . . for the initial purpose of using the property as a rental.” 

California Appellate Court Holds Limitations Period for Quiet Title Action Did Not Begin When Homeowners Received Notice of Trustee’s Sale

The California Court of Appeals recently found that a quiet title action brought by homeowners challenging a deed of trust five years after receiving a notice of trustee’s sale was not untimely because their possession was not disturbed, as they immediately submitted the issue to the title insurer.  See Huang v. Wells Fargo Bank, N.A., 2020 WL 2059951 (Cal. Ct. App. Apr. 29, 2020).

Illinois Appellate Court Holds One-Year Limitations Period Applies to TILA Rescission Claim

The Appellate Court of Illinois recently found that borrowers bringing a claim under the Truth in Lending Act (“TILA”) for a lender’s refusal to rescind a mortgage must bring the action within one year of the lender’s violation.  See U.S. Bank Nat’l Ass'n v. Miller, 2020 IL App (1st) 191029 (Ill. App. 2020).  The defendant borrowers refinanced their mortgage in 2007. 

New Jersey Court Vacates Final Judgment in Tax Sale Foreclosure

The New Jersey Chancery Division in Bergen County recently vacated a final judgment of foreclosure based on the defendant’s principal’s health issues and its attorney’s alleged negligence.  See BV001 REO Blocker, LLC v. HB (USA) Properties, LLC, Docket No. BER-F-2097-19.  Plaintiff filed a tax foreclosure complaint relating to the defendant entity’s property in January 2019 and served defendant in February.

D.C. Federal Court Holds Insured Not Entitled to Defense in Forged Deed Lawsuit After Insured Conveyed Property

The United States District Court for the District of Columbia recently held that an insured was not entitled to a defense in a lawsuit alleging a forged deed after it conveyed the property, and when the underlying complaint alleges that the insured was involved in wrongful conduct.  See Sec. Title Guarantee Corp. of Baltimore v. 915 Decatur St NW, LLC, 2019 WL 6728449 (D.D.C. Dec. 11, 2019), as amended (Mar. 23, 2020).

New Mexico Bankruptcy Court Holds Title Insurance Company Was Not Liable for the Alleged Negligence of the Title Agent

The United States Bankruptcy Court for the District of New Mexico recently found that a title insurance company was not liable for the alleged negligent acts of the title agent in failing to discharge a mortgage.  See Lamey v. Las Cruces Abstract and Title Co., et al., 2020 WL 1884189 (Bankr. D.N.M. Apr. 15, 2020).  In the case, the insured plaintiffs brought an action against a title agent and a title insurance company based on the agent’s failure to discharge a mortgage.