Florida Court Holds Lender Can Seek Attorneys’ Fees from Prior, Dismissed Action as Condition of Restatement

A Florida appellate court recently held that a lender can include the attorneys’ fees it incurred in a prior foreclosure action as a condition of reinstating the delinquent loan, even when the prior action was dismissed for lack of prosecution and when the borrower was awarded his own fees as prevailing party in the prior action.  See Colombo v. Robertson, Anschutz & Schneid, 2022 Fla. App. LEXIS 3075 (Dist. Ct. App. May 4, 2022).

Illinois Appellate Court Holds November 2020 Foreclosure Sale Was Not Improper in Light of COVID Moratorium

The Illinois Court of Appeals recently found that Fannie Mae’s COVID-related instruction for servicers to suspend foreclosure-related activities beginning in March 2020 was not grounds to vacate a February 2020 foreclosure judgment or a November 2020 foreclosure sale. See Bayview Loan Servicing, LLC v. Starks, 2022 IL App (2d) 210056, ¶ 3 (Ill. App. Ct. May 5, 2022). 

Kentucky Federal Court Holds Law Firm May Be Liable for Searching Title to Incorrect Property

The United States District Court for the Eastern District of Kentucky recently held that a lender might have a professional negligence claim against a law firm when the law firm conducted a title search for the incorrect property, the resulting mortgage encumbered the incorrect property and, as a result, the lender was forced to repurchase the mortgage.   See Crescent Mortg. Co. v. Freeman, 2022 U.S. Dist. LEXIS 59727 (E.D. Ky. Mar. 31, 2022). 

Washington Supreme Court Orders Physical Removal of Racially Restrictive Covenant from Public Records

The Washington Supreme Court recently remanded a declaratory action stemming from a racially restrictive covenant in a deed to comply with RCW 49.60.227, as amended by the Washington legislature during the 2021 legislative session, which permits a court to strike a racially restrictive, legally unenforceable covenant from the public records and eliminate the covenant from the title. See May v. Spokane County, 2022 Wash. LEXIS 199 (Wash. Mar. 31, 2022).

In Split Decision, Tenth Circuit Affirms Dismissal in Overdraft Charge Dispute

In a split decision, the United States Court of Appeals for the Tenth Circuit recently affirmed a lower court’s dismissal in a suit in which a customer of a bank challenged the bank’s overdraft charge practices and claimed they constituted usurious loans.  See Walker v. BOKF, Nat’l Ass’n, 2022 U.S. App. LEXIS 9708 (10th Cir. Apr. 8, 2022).  The plaintiff in the action holds a checking account with BOKF, National Association (the “Bank”).