Bankruptcy Judges are catching on to these shady lender practices
Due to the increase in title defects and note ownership discrepancies that we have discovered and/or been advised about through the U.S. Trustee, I have determined that consenting to relief without a thorough investigation of the security instruments is not a prudent practice on my part. Unfortunately, with the increasing volume of Motions for Relief, I do not have the time or trained staff to handle such an investigation and thus have elected to withhold my consent to the relief. Secured Creditors will have to go to hearing on their Motions for Relief. Good news for local appearance counsel, I guess. Along the same lines, the UST has placed an emphasis on insuring that the proofs of claim filed by secured creditors/mortgagees secured by a lien on the debtor’s residence are accurate and proper. Accordingly, all such claims should: 1. Attach documents supporting a perfected security interest; 2. Provide an itemization of the pre petition fees, costs and other charges included in the POC; 3. Include a separate line entry for any reasonable flat fee for review of the chapter 13 plan prior to confirmation and for the preparation of the proof of claim. All local attorneys that appear on behalf of out of town firms, please advise your clients of these requirements. Thank you.
