New York Federal Court Dismisses Bank’s Foreclosure Complaint for Lack of Subject Matter Jurisdiction, Finding Plaintiff Failed to Properly Establish Diversity of Citizenship as Trustee

The United States District Court for the Northern District of New York recently denied plaintiff bank’s motion for default judgment in a foreclosure action and dismissed the complaint for lack of subject matter jurisdiction, finding that plaintiff failed to sufficiently allege the existence of diversity of citizenship to establish subject matter jurisdiction. 

New Jersey Superior Court Holds Condominium Association Was Not Entitled to Redeem Tax Sale Certificate on Condominium

The Superior Court of New Jersey, Hudson County, Chancery Division-General Equity Part recently held that a condominium association’s attempt to redeem a tax sale certificate on a condominium on which it held a lien was not valid because it was neither a mortgagee nor the owner of the property.  See JNH Funding Corp. v. Ayed et al., F-8704-14 (N.J. Ch. Div. March 21, 2017). 

California Appellate Court Reverses Lower Court’s Decision and Holds Insured Was Collaterally Estopped from Lawsuit Against Title Insurance Company

The California Court of Appeals recently reversed a trial court’s order and held that an insured property owner was collaterally estopped from suing a title insurance company for coverage regarding a forged deed to the insured property.  See Gillard v. Fid. Nat’l Title Ins. Co., 2017 WL 345086 (Cal. Ct. App. 2017), reh’g denied (Feb. 14, 2017), review filed (Mar. 7, 2017).  In the case, the insured purchased the property in 2004. 

Maine’s Supreme Court Holds That the Mere Possibility of Future Claim for Public Easement Does Not Trigger Coverage Under Title Insurance Policy

The Supreme Judicial Court of Maine recently affirmed a lower court’s judgment in favor of defendant title insurance company and the denial of plaintiff’s cross-motion for summary judgment in an action for coverage and indemnification under a title insurance policy on the ground that plaintiff failed to identify any cloud on its title or any other title defect that would implicate defendant’s duty to defend.

Third Circuit Affirms Foreclosure Judgment Finding Lender Had No Duty To Borrower To Monitor Property Inspections On Residential Construction Loan

In a case successfully litigated by Riker Danzig partner Jonathan Vuotto, the Third Circuit Court of Appeals recently affirmed the District Court of New Jersey’s grant of foreclosure judgment in favor of plaintiff, Bank of America, N.A., successor in interest to Merrill Lynch Credit Corporation, by and through its servicer

Florida Federal Court Dismisses Complaint Alleging Violations of RESPA and FDCPA Due to Plaintiff’s Failure to Provide Notice and Opportunity to Cure, as Required Under the Mortgage

The United States District Court for the Southern District of Florida recently granted defendant mortgage company’s motion to dismiss plaintiff’s complaint alleging, inter alia, violations of the Real Estate Settlement Procedures Act, 12 U.S.C. §2605(k) (“RESPA”) and the Fair Debt Collection Practices Act, 15 U.S.C. §§1692e, 1692f (“FDCPA”), because she failed to provide defendants with notice of the alleged issues and an opportunity to cure, as required under the mortgage. 

Third Circuit Holds Mortgage Servicer May Not Recalculate Mortgage Insurance Termination Date Based on Updated Home Value After Loan Modification

In a homeowner class action, the United States Court of Appeals for the Third Circuit recently held that a lender that modifies a mortgage cannot rely on an updated property value to recalculate the length of the homeowner’s mortgage insurance obligation under the Homeowners Protection Act (the “HPA”) unless same is expressly set forth in the loan modification agreement.