NATIONAL – Federal Court in FDCPA and NCDCA case filed by aggrieved former borrower may disregard findings of fact made by state foreclosure court without implicating Rooker-Feldman doctrine

LEXOLOGY.COM:  Federal Court in FDCPA and NCDCA case filed by aggrieved former borrower may disregard findings of fact made by state foreclosure court without implicating Rooker-Feldman doctrine
Hutchens Law Firm
October 1, 2015

Attorneys representing a homeowners’ association in foreclosure proceedings filed as a result of the homeowner’s failure to pay monthly assessments may not rely on the completed foreclosure proceedings in their motion to dismiss a federal complaint filed by the former homeowner alleging violations of the FDCPA and NCDCA (North Carolina’s version of the federal FDCPA), even where the District Court may make findings of fact in direct contradiction to the findings made in the foreclosure proceedings.

In Foh v. Chase, 2015 WL 5254312 (M.D.N.C., September 9, 2015), after foreclosure proceedings were completed and the plaintiff homeowner’s residential property was sold, plaintiff filed suit in federal court against the association and the attorneys who had represented the association in the foreclosure.  The allegations in plaintiff’s complaint included: (i) statements made in the association’s foreclosure affidavit concerning service were made in bad faith because defendants knew plaintiff had relocated; (ii) despite knowing she was represented by counsel, defendants continued to mail notices directly to plaintiff; and, (iii) defendants misled plaintiff that the foreclosure sale would be postponed to allow for negotiations.  Read more:

Posted on October 2, 2015, in Uncategorized. Bookmark the permalink. Comments Off on NATIONAL – Federal Court in FDCPA and NCDCA case filed by aggrieved former borrower may disregard findings of fact made by state foreclosure court without implicating Rooker-Feldman doctrine.

Comments are closed.