A New Jersey intermediate appellate court set aside a sheriff’s sale and vacated summary judgment originally granted in favor of foreclosing entity because it failed to prove it had standing on the day that the foreclosure complaint was filed. An amended complaint filed after plaintiff received an assignment of mortgage did not cure the defect.
Cal. Appellate Court on Option ARMs
Yesterday in the case of Boschma, et al v. Home Loan Center, Inc., No. G043716, a California Appellate Court held that homeowners sufficiently stated a claim for a state UDAP violation based on the lender’s disclosure that suggested only the possibility of negative amortization and interest rate increases, when both were certain. The interest rate was going to rise from the introductory teaser rate, and if the borrowers paid according to the payment schedule in the TIL disclosure negative amortization was also a certainty.
NACBA Files Amicus in Fourth Circuit on Issue of Class Certification
NACBA and the National Association of Consumer Advocates has requested leave to file an amicus brief in the case of Gentry v. Circuit City, Inc. No. 10-2418 (4th Cir.) to address the issue of the proper standards to be applied by the bankruptcy court in determining whether to certify a class in bankruptcy. The class consisted of employee creditors of Circuit City. The amici argue that the lower courts erred in finding that the bankruptcy court had discretion, without conducting a factual inquiry under Rule 23, to find that the individual bankruptcy process was superior to class actions. The brief further argues that the bankruptcy court erred in finding that the class claim must be filed prior to the “claims bar date” rather than at “an early practicable time” as required by Rule 23.