Citibank Scores Victory in Foreclosure Case Ruling – NMP Skip to main content

Citibank Scores Victory in Foreclosure Case Ruling

Phil Hall
Oct 07, 2016
The first quarter of this year saw mortgage servicers arranging 319,000 non-foreclosure solutions for distressed homeowners

Citibank scored a legal victory with an appeals court ruling that debtors that surrendered property under the Bankruptcy Code did not have the right to oppose the bank’s foreclosure efforts.

According to a Bloomberg report, the Citibank case involved David and Donna Failla, who defaulted on their mortgage in 2009 and filed for bankruptcy two years later. Although the Faillas approved the surrender their house in order to discharge their mortgage debt, they challenged Citibank's foreclosure proceedings on the property. But both a bankruptcy court and a district court sided with Citibank.

Judge William Pryor of the U.S. Court of Appeals for the Eleventh Circuit wrote in a ruling that bankruptcy courts can order debtors that surrender their property under Section 521(a)(2) to drop their opposition to a foreclosure.

“Section 521(a)(2) requires a debtor to either redeem, reaffirm, or surrender collateral to the creditor,” Pryor stated. “Having chosen to surrender, the debtor must drop his opposition to the creditor’s subsequent foreclosure action … The bankruptcy court had the authority to compel the Faillas to fulfill their mandatory duty under section 521(a)(2) not to oppose the foreclosure action in state court.”

Published
Oct 07, 2016
Chairman Xu Sells Off Personal Assets To Avoid Default

The Evergrande saga continues as Chairman Xu Jiayin sells off 7 billion yuan ($1.1 billion) of his personal assets to prop up the deflating property giant.

Industry News
Nov 23, 2021
OptiFunder Secures $25 Million In Capital

OptiFunder, a warehouse management system provider for mortgage originators, raised $25 million in additional capital lead by Arthur Ventures, a growth capital firm focused on high-growth, founder-led and capital efficient B2B software companies.

Tech
Nov 23, 2021
Mortgage Company Donates $100K To High School In Memory Of Fallen U.S. Navy Corpsman

Cleveland-based CrossCountry Mortgage donated $100,000 to Milan Edison High School in memory of U.S. Navy Corpsman, Maxton W. Soviak, who died while assisting in the evacuation of Americans and refugees in Afghanistan in August.

Community
Nov 23, 2021
MISMO Seeks To Standardize Pre-Closing Title Data

Forming workgroup to focus on standardizing document datasets to streamline process and increase efficiency.

Industry News
Nov 23, 2021
Pandemic's Impact On Real Estate Around The World

Although the impact of the COVID-19 pandemic on the real estate industry has been well-documented within the United States, it’d be prudent to know how the global event impacted other countries as well. 

Industry News
Nov 22, 2021
Housing Market Potential Strengthens Modestly

First American Financial Corporation's Potential Home Sales Model for October 2021 reported that potential existing-home sales increased 0.1% month-over-month to 6.27 million, with household formation continuing to grow, largely driven by millennials.

Analysis and Data
Nov 22, 2021