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As Counsel for Balch and Bingham LLP, Ginny Willcox Leavens focuses on financial services, real estate, and financial regulatory litigation and counseling for banks, mortgage servicers, creditors, and real estate companies.

In In Re: Bay Circle Properties, LLC., No. 1812536, 2020 WL 1696303 (Ala. April 8, 2020), the Eleventh Circuit dismissed an appeal by a guarantor alleging a wrongful foreclosure, because the guarantor did not own the foreclosed property and therefore lacked Article III standing.  Here are the facts:  Debtor owed for two loans,

In Forbes v. Platinum Mortgage, Inc., No. 1180985, 2020 WL 746533 (Ala. Feb. 14, 2020), the Alabama Supreme Court upheld the validity of a home mortgage.  There, the husband borrowed $175,000, securing the loan with a mortgage on the couple’s home.  The husband signed the mortgage for himself and signed on behalf of his wife – pursuant to a Power of Attorney from his wife.  Later, the wife was declared incompetent and ultimately died.  The conservator sued, seeking to nullify the loan and contending that the Power of Attorney was forged.

Continue Reading A Properly Notarized Power of Attorney Provides Authority to Execute Mortgages

The Eleventh Circuit recently clarified that sending periodic mortgage statements following a debtor’s bankruptcy discharge is not misleading to the “least sophisticated consumer.” In Helman v. Bank of America, 15-13672, 2017 WL 1350728 (11th Cir. April 12, 2017) Gayle Helman filed suit, alleging that Bank of America violated the Fair Debt Collections Practices Act (FDCPA), Florida Consumer Collection Practices Act (FCCPA), and other state laws when it sent Ms. Helman periodic mortgage statements after her mortgage loan was discharged in bankruptcy.  She claimed that the statements unlawfully attempted to collect a discharged debt and that such communications would be misleading to the least sophisticated consumer because it suggested she remained liable for the debt.

Continue Reading Eleventh Circuit Declines to Expand Reach of “Least Sophisticated Consumer” Standard In the Context of Sending Periodic Mortgage Statements Following Bankruptcy Discharge