California District Court Dismisses Complaint Alleging Wrongful Foreclosure for Lack of Standing on the Ground that a Mistake in Recording Renders an Assignment Void, Not Voidable

The Northern District of California recently granted defendant bank’s motion to dismiss pro se plaintiffs’ complaint alleging wrongful foreclosure on jurisdictional grounds.  See Wyman v. First Am. Title Ins. Co., 2017 WL 512869 (N.D. Ca. Feb. 8, 2017).  In the case, plaintiffs obtained a loan from defendant bank secured by a deed of trust on plaintiffs’ residence. 

Pennsylvania Appellate Court Denies Title Coverage After Settlement Agent’s Misappropriation of Funds

The Superior Court of Pennsylvania recently affirmed a lower court’s denial of a lender’s claim for coverage from a title insurance company after a settlement agent misappropriated the closing funds and failed to pay off the prior mortgages on the insured property.  See Northwest Sav. Bank v. Fid. Nat’l Title Ins. Co., 2017 WL 253080 (Pa. Super. Ct. 2017). 

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