Most community associations already know the Planned Community Act allows them to place a lien on a delinquent homeowner's property and foreclose on that interest. But to do so, associations must comply strictly with the...more
Creditors know that a bankruptcy petition automatically halts efforts to collect pre-petition debts from the debtor outside of bankruptcy.
The "automatic stay" provides fundamental protection to debtors, mandating a full...more
Five years ago, the General Assembly amended the foreclosure statute to prohibit an attorney who serves as trustee or substitute trustee from representing the noteholder or the borrower during a foreclosure proceeding. ...more
Bankruptcy offers a temporary sanctuary for parties seeking relief from a variety of problems – financial crisis, lawsuits, collection actions, repossessions, foreclosure, and pandemics.
Filing bankruptcy before a money...more
We previously informed you that if you are a small business that needed to file bankruptcy to save your company, you may be able to take advantage of Subchapter V of Chapter 11 of the Bankruptcy Code. Subchapter V was part of...more
The CARES Act, which became law on March 27, 2020, imposes important restrictions on foreclosure activity by servicers of federally-backed mortgage loans.
It also grants expansive rights to borrowers to seek forbearance of...more
When an SBA loan goes into default, the SBA requires a lender to commence litigation when the lender concludes that (1) defensive action is necessary to protect the collateral or ability to collect from the obligor or (2)...more
10/17/2019
/ Affirmative Defenses ,
Best Practices ,
Borrowers ,
Corporate Counsel ,
Counterclaims ,
Defense Strategies ,
Foreclosure ,
Litigation Fees & Costs ,
Litigation Strategies ,
SBA ,
SBA Lending Programs ,
Small Business ,
Small Business Loans
For several years, the United States Small Business Administration (SBA) has experienced continuous growth with its flagship 7(a) and 504 business loan programs. For fiscal year 2018, the SBA made over $24 billion in loans...more
9/26/2019
/ Arms Length Transactions ,
Best Practices ,
Deed of Trust ,
Deed-in-Lieu of Foreclosure ,
Federal Contractors ,
Foreclosure ,
Government Shutdown ,
Liquidation ,
Non-Judicial Foreclosures ,
Property Owners ,
SBA ,
Small Business ,
Small Business Loans ,
Standard Operating Procedures
If a Clerk of Court authorizes a foreclosure sale and the trustee sells the property, can a borrower or other aggrieved party later sue to nullify the foreclosure sale or recover damages caused by the foreclosure?
In the...more
In my last article, I discussed whether inconsistent dates on a promissory note and deed of trust could cause problems in foreclosure.
But what if you can't even find the original promissory note? Perhaps it was...more
Consider this scenario: You loan money to a borrower.
You intend to secure the loan with a deed of trust encumbering real property. Your borrower signs a promissory note dated November 7, 2006. But your deed of trust is...more
The United States District Court for the Middle District of North Carolina recently issued a decision that demonstrates the power of attorneys’ fees provisions in promissory notes and guaranty agreements. In TD Bank v. Jay...more
On August 30, 2017, an amendment to North Carolina’s foreclosure statutes took immediate effect. The amended statute, Section 45-10, concerns substitute trustees under a deed of trust. As amended, Section 45-10 now prohibits...more
The United States Court of Appeals for the Fourth Circuit—which covers federal courts in North Carolina—recently affirmed a borrower’s victory against a loan servicer under the federal Fair Credit Reporting Act (“FCRA”). In...more
9/15/2017
/ Appeals ,
Compensatory Damages ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reports ,
Equifax ,
Fair Credit Reporting Act (FCRA) ,
Foreclosure ,
Jury Verdicts ,
Loan Servicer ,
Punitive Damages ,
Reaffirmation ,
Reduction of Damages ,
Unfair or Deceptive Trade Practices
On Friday, May 5, 2017, in a major victory for lenders, the North Carolina Supreme Court reversed the North Carolina Court of Appeals’s decision in United Community Bank v. Wolfe. In July 2015, the Court of Appeals decided in...more
5/10/2017
/ Appeals ,
Borrowers ,
Community Banks ,
Deficiency Judgments ,
Foreclosure ,
Genuine Issue of Material Fact ,
Lenders ,
NC Supreme Court ,
Substantial Evidence Standard ,
Summary Judgment ,
Valuation