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Category Archives: Foreclosure

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Lis Pendens Saves Equitable Mortgage

Posted in Collateral, Foreclosure, mortgage
The Kentucky Court of Appeals recently affirmed in Brooks v. J.P.Morgan Chase Bank, N.A. that an equitable mortgage established in litigation has priority over a pendente lite mortgage.  The Lender filed an action to correct several deficiencies with its mortgage: (1) signed by husband but not wife; (2) unidentified preparer; (3) no scrivener’s statement; (4)… Continue Reading

New York and Florida Courts Enforce E-Notes

Posted in CFPB, Foreclosure, Kentucky Law, Note Sales
Appellate courts in New York and Florida recently ruled that mortgage lenders “holding” electronic notes had standing to foreclose on the real property securing the E-Notes. Although Congress passed the Electronic Signatures in Global and National Commerce Act (ESIGN) in 2000, and nearly all states have passed the Uniform Electronic Transactions Act (UETA) in the… Continue Reading

Statute of Frauds Prevents Borrower From Modifying Modification Agreement Orally

Posted in Forbearance, Foreclosure, Kentucky Law, mortgage
In Parker v. Kentucky Housing Corporation, the Kentucky Court of Appeals affirmed an order of sale in a foreclosure action.  Mrs. Parker first defaulted on her obligations in 2001 and again in 2004.  Kentucky Housing Corporation modified her loan in March 2005 by reducing the interest rate for two years.  DMM, as agent for KGC,… Continue Reading

Kentucky Court of Appeals: Seniors Rule!

Posted in Foreclosure, Kentucky Law
The Kentucky Court of Appeals ruled last week that a junior mortgagee may not force a judicial sale free and clear of a senior mortagee’s interest even when the senior mortgagee defaults in the underlying foreclosure litigation. In Mortgage Electronic Registration Systems v. Mainsource Bank, No. 2012-CA-001168 (Feb. 21, 2014), the junior lienholder had instituted a foreclosure… Continue Reading

Enforcing Troubled Business Debt In Kentucky

Posted in Foreclosure, Kentucky Law, Receivership
That troubled business credit in Kentucky is slowly but surely winding its way through your workout roadmap.  Despite your generous extension, efforts to broker a refinancing have failed.  Your borrower stops making payments.  Your borrower resists discussing a friendly liquidation.  Pretty soon, your borrower stops returning your calls altogether.  You reach out to counsel.  What… Continue Reading