Pending Changes in Bankruptcy Forms:

Many of the official Bankruptcy Forms will be replaced with revised versions effective December 1, 2015. Mortgage creditors will be required to use a new Mortgage Proof of Claim Attachment (Official Form 410A) for claims filed after December 1, 2015 and secured by a security interest in the debtor’s principal residence. The new attachment includes the following changes:

  • Official Form 410A will replace Official Form 10A and require a payment history from the “first date of default” to the petition date;
  • The “first date of default” is defined as the “first date on which the borrower failed to make a payment in accordance with the terms of the note and mortgage, unless the note was subsequently brought current with no principal, interest, fees, escrow payments or other charges immediately payable”;

As has been the trend, the new form is geared towards providing more information to the Debtor and the Court and to provide more transparency in the calculation of claims. The new form will require additional information to accurately complete.

More information regarding the pending changes in the Bankruptcy Forms is available here.

Douglas v. Troy Bank & Trust Company

In yet another case decided by the Alabama Court of Civil Appeals on August 24, 2012, the Court  rejected the common argument often made by borrowers that a foreclosing lender must produce the original promissory note.  In the case of Douglas v. Troy Bank & Trust Company, an ejectment action arose following a non-judicial foreclosure by the Bank.  The borrowers asserted that the Court did not have subject-matter jurisdiction because the Bank was not a “holder in due course” of the Note or the mortgage nor had the Bank produced the original “wet-ink signature” promissory note and mortgage.  The trial court entered judgment in favor of the Bank and the borrowers appealed to the Alabama Court of Civil Appeals.  In upholding the judgment of the trial court, the Court of Appeals details the findings of courts in other jurisdictions as to this issue in finding that these “show me the note” arguments lack merit under Alabama law.

Wendel C. White v. Citibank

The Superior Court of Gwinnett County, Georgia has recently ruled on another wrongful foreclosure case dealing with the assignment of a security deed by Mortgage Electronic Registration Systems (MERS) to the foreclosing secured party.  The Court held that Georgia law is clear that as the nominee of the originating lender, MERS had the ability and legal authority to transfer and assign the security deed.  The Court further held that the borrower lacked standing to challenge the assignment from MERS because he was not a party to the contract.  The case is Wendel C. White v. Citibank, N.A., et al., Superior Court of Gwinnett County, 11-A-10818-8.