Publications for Finance, Real Estate & Bankruptcy Law
In sports, it is often said that, “The best offense is a good defense.” This adage holds true not only on the field of play, but also in business and in life.
Over the course of the coming months, we will be publishing a series of articles that discuss some of the common real estate, finance, and corporate issues that our clients face on a day-to-day basis.
The purpose of bankruptcy is twofold: (1) to provide the party filing for bankruptcy—the “debtor”—with a fresh start, and (2) to fairly distribute the debtor’s non-exempt assets to creditors in accordance with the priority scheme set forth in the U.S. Bankruptcy Code.
In May 2017, the City of Detroit announced its intention to implement a city-wide effort to enforce tougher rental ordinance rules on landlords, including demanding that rental properties be registered and brought into compliance.
Michigan has the second longest coastline in the United States trailing only the state of Alaska. With the hot summer months quickly approaching, Michigan’s expansive coastline (including inland shorelines) will be taken over by beachgoers.
While Minnesota is well known as the "Land of 10,000 Lakes," the State of Michigan could also claim that title as it contains more than 11,000 inland lakes. The Michigan Economic Development Corporation notes that anyone living in Michigan is never more than six miles away from a lake or stream.
By most measures the economy is strong. Unemployment is low. The stock market is roaring. Gross domestic product is rising. Under these circumstances, bankruptcy is on few people’s minds.
On February 6, 2018, Governor Snyder signed Public Act 16 of 2018, which creates a Uniform Commercial Real Estate Receivership Act (the “Act”) in Michigan. The bill was sponsored by State Representative Brandt Iden, of the 61st District. PA 16 can be viewed here.
On June 12, 2017, the Supreme Court decided Henson v. Santander Consumer USA Inc., No. 16–349, a case that considered the issue of whether a party that holds debt should be held to the same standards as a party that seeks to collect the debt owed to another party under the Fair Debt Collection Practices Act (the “FDCPA”).
On July 16, 2014, the Uniform Law Commission (the “Commission”) approved a series of changes to the Uniform Fraudulent Transfer Act (the “UFTA”). The UFTA had previously been adopted by most states in the country, including Michigan. The Commission’s amendments included changing the name of the law from the UFTA to the Uniform Voidable Transactions Act (the “UVTA”).
At some point, a municipality and its leaders likely will be forced to grapple with the following question: Does a landowner have any rights if the landowner builds a home or other obstruction in a road right of way or other property dedicated to the public?
In a case involving a complex set of facts, the Michigan Court of Appeals (the “Court”) recently published an opinion concerning a priority dispute between mortgage lenders involving the doctrine of equitable subrogation (Wells Fargo Bank, N.A. Trustee v. SBC IV REO, LLC and Capitol National Bank, No. 328186, November 29, 2016).
On December 28, 2016, Governor Rick Snyder signed into law Public Act 378 of 2016 (the “Act”), which abolishes all statutory or common law rights of dower in Michigan, except in the case of a widow whose husband dies before the Act’s effective date.
Governor Rick Snyder signed into law two bills, Public Acts 330 and 331, that modernize Michigan’s trust laws by allowing domestic asset protection trusts (“DAPTs”) for the first time in the state. With its adoption of the Qualified Dispositions in Trusts Act (the “Act”) last month, Michigan joined 16 other states that allow for the creation of DAPTs. The new laws go into effect on March 8, 2017.
What happens when: (i) a mortgagor, who has defaulted, assigns her rights to any surplus proceeds from the foreclosure sale to a third party, (ii) the mortgagee submits a partial credit bid, and (iii) the property sells for more than the credit bid, but less than the amount due under the mortgage? Is the assignee entitled to the proceeds in excess of the partial credit bid, or should those excess funds go to the mortgagee?
Lenders who place a full credit bid can’t recover a deficiency based on unpaid taxes incurred prior to a foreclosure sale according to the decision in Citizens Bank v Boggs.
The foreclosure of a mortgage is “debt collection” under the Fair Debt Collection Practices Act according to the Sixth Circuit Federal Court of Appeals in Glazer v Chase Home Finance, LLC.
The Dodd-Frank Deposit Insurance Provision affords noninterest-bearing transaction accounts unlimited deposit insurance coverage. Absent an extension or further legislation, that provision is scheduled to expire on December 31, 2012.
The CFPB is tasked with regulating and enforcing a list of consumer protection laws including: RESPA, TILA, HOEPA, SAFE Act, HMDA, Fair Credit Reporting, Truth-in-Savings, the Consumer Financial Protection Act and Mortgage reforms, among others.
In a recent opinion, the Michigan Court of Appeals issued a key decision regarding foreclosing by advertisement while concurrently suing guarantors.
Effective December 1, 2011, the Federal Rules of Bankruptcy Procedure (FRBP) that govern filing a proof of claim will change dramatically.