News + updates + recent press
On Thursday, August 27, 2020, FHA and FHFA Released the highly anticipated extensions extending the Foreclosure and Eviction Moratoriums until December 31, 2020.
VA released their updated Foreclosure and Eviction Circulars yesterday (Circular 26-20-29 and Circular 26-20-30) extending the foreclosure and eviction moratorium until December 31, 2020. On Friday, August 28, 2020, USDA released additional guidance and extended its moratorium through December 31, 2020, as well. Read USDA's release here.
Need more on FHA updates and developments?
Register for PANDIFFERENT, the PLG web summit, on October 1 and hear directly from Marissa Yaker, Esq. as she leads a session on FHA updates, handbook revisions, and the impact of COVID-19 holds and moratoriums on foreclosures and evictions as we look at post-pandemic default servicing.
In a unique move, that mimics the rules of Federal Procedure, The Texas Supreme Court has made some of the biggest discovery changes to occur in Texas State trial courts in the past two decades. Attorneys and staff will need to take to learn and fully understand all the changes in order to properly implement new procedures as they apply to all cases filed on or after January 1, 2021.
In accordance with the 86th legislature and Senate Bill 2342 the Texas Supreme Court has approved amendments to Rules 169 and 194 of the Texas Rules of Civil Procedure.
Rule 169 governing expedited actions has been amended to apply to suits in which all claimants, other than counter-claimants, affirmatively plead that they seek only monetary relief aggregating $250,000 or less excluding interest, statutory, or punitive damages and penalties, and attorney’s fees and costs. This amendment has effectively raised the statutory limitation for expedited actions from $100,000 to $250,000. This will essentially promote the prompt, efficient, and cost-effective resolution of civil actions filed in courts of law in which the amount in controversy does not exceed $250,000. Further, certain actions will remain exempt from Rule 169’s application by statute. See e.g. Tex. Estates Code Sec. 53.107.
The most important changes to be aware of however have been made to the rules of discovery. Per the new amendments, discovery and production will no longer be optional.
Effective as of January 1, 2021 Rule 194 has been amended as follows:
194.1 Duty to Disclose; Production
In a decision that will be deemed as a big win for creditors, litigators, or really anyone who has ever dealt with evasive defendants, the State of Texas has decided to enter into a new age and territory when it comes to dealing with service of process.
The Supreme Court of Texas in accordance with the 86th Legislature and Senate Bill 891 has approved amendments to Rule 106 of the Texas Rules of Civil Procedure. Rule 106 has been revised in response to section 17.033 of the Civil Practice and Remedies Code, which calls for rules to provide for substituted service of citation by social media.
ProChamps will implement the requirements outlined below for the City of West Palm Beach on the implementation detailed. Please update information accordingly. The changes outlined will be implemented in our system August 13th, 2020. These changes were made effective May 18, 2020.
Please make note of the following pending changes:
Arkansas Bankruptcy Court Reaffirms its Adherence to the “Sale Rule” But Allows Recording of Foreclosure Deed After Bankruptcy Petition Filed
On April 30, 2020, the United States Bankruptcy Court for the Eastern District of Arkansas held that even though a foreclosure sale is not complete until the deed is recorded, a third-party purchaser is still entitled to relief from the automatic stay so that it may record the foreclosure deed, and thus complete the sale, even after the filing of the chapter 13 bankruptcy petition by the debtor. In re King, 614 B.R. 851 (2020).
In Ark Real Estate Services, Inc. v. 21st Mortgage Corp., No. 4D20-122, a purchaser of real property at a foreclosure sale sued 21st Mortgage Corp., a mobile home lender that repossessed the mobile home from the land after the sale. The purchaser claimed that the foreclosure judgment extinguished the lender’s lien on the mobile home. On July 29, 2020, the Fourth DCA held that the mobile home lender’s lien survived the foreclosure sale and that the circuit court properly entered judgment against the purchaser on its claims of conversion and civil theft.
On appeal, Ark argued that the mobile home became part of the land. It contends that the mobile home was permanently affixed to the real estate and was captured by the mortgage’s “after-acquired” property clause. Therefore, Ark argued that 21st Mortgage’s security interest in the mobile home was extinguished by the final judgment of foreclosure. The Fourth DCA rejected Ark’s argument for two reasons: 1) under Florida law, the issue of priority is established by statute, so the mobile home’s status as a fixture does not impact the validity of the security interest on the mobile home; and (2) the foreclosure action only extinguished competing interests in the land, not any interest in the mobile home. Accordingly, the first mortgagee’s foreclosure action did not impact 21st Mortgage’s security interest in the mobile home, and 21st Mortgage was well within their rights to repossess the mobile home from the subject property.
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