The LOGS Network proudly announced the promotion of Christopher Phillips, Esq., to Managing Partner, effective immediately. In this newly created executive leadership role, Christopher will contribute to the strategic direction and governance of our law firms. ​

​Phillips joined LOGS in 2008 as Managing Partner for Shapiro, Van Ess, Phillips & Barragate, LLP. Licensed in both Ohio and Kentucky, he has spent nearly 20 years specializing in Creditor Rights, Real Estate, Title Insurance, Real Estate Settlements, REO Representation and related Litigation. Phillips is an active member in the community and participates in several industry associations including MBA, ALFN and Legal League 100. Phillips received his Juris Doctor degree from Thomas Jefferson School of Law in San Diego, CA. He earned his B.A. in Political Science from University of Toledo in Toledo, OH. Phillips can be reached at cphillips@logs.com.

​The United States Bankruptcy Court for the Northern District of Mississippi found that for purposes of  interpreting 11 USC 1322(c)(1), the debtor’s right to cure a default terminates at the conclusion of the foreclosure auction and not delivery or recordation of a trustee’s deed.  The Court found that this is because the mortgagor is divested of legal title upon default and the equity of redemption upon the conclusion of the public auction.   In the absence of a legal or equitable interest at the commencement of a bankruptcy case filed subsequent to the completion of the auction, the property is not property of the estate.
 
The firm received this positive ruling in a matter of first impression with respect to the finality of the foreclosure sale under Mississippi law.  The Court found that a valid foreclosure auction constitutes a foreclosure sale and  divests a debtor of both legal and equitable title to real property so that the automatic stay of 11 USC 362(a) will not come into effect to invalidate a foreclosure sale even though a deed has not been delivered or recorded.  In  a well reasoned memorandum, Judge Woodard affirmed the arguments put forth by Shapiro & Brown, LLC  to find that the debtor’s interest terminates when the auction concludes and does not require a trustee’s deed to be delivered or recorded.  In this case, the auction began at 11:05 A.M. concluded at 11:28 A.M. and the bankruptcy case was filed at 11:28 A.M. The trustee’s deed was signed and delivered on February 5th 2020 and subsequently recorded on February 12th 2020.

The national health emergency order and subsequent state emergency and “stay at home” orders have forced businesses to implement remote work strategies. In response, federal and state governments have implemented laws to allow for various electronic processes, including remote notarizations.

Before the COVID19 pandemic, only 23 states allowed remote notarizations. Since the Pandemic emerged, most states have adopted emergency laws or issued executive orders allowing or expanding existing laws to allow remote notarizations. This article provides an overview of the legal framework related to remote online notarization and highlights several business and risk considerations when using remotely notarized documents.

​11 U.S.C. § 362(c)(3)(A) of the bankruptcy code states that when a debtor had a bankruptcy case pending within the preceding year, and it was dismissed, the automatic stay "shall terminate with respect to the debtor or property securing such debt ... on the 30th day after the filing of [a second] case". There is a split among the bankruptcy courts as to whether this section of the code lifts (i) the automatic stay as to the debtor and the bankruptcy estate, or (ii) just the automatic stay as to the debtor. In the past, the position of the Minnesota bankruptcy courts had been that § 362(c)(3)(A) lifts the automatic stay as to both the debtor and the property of the estate.

The courts have issued numerous judicial interpretations related the Fair Debt Collection Practice Act (FDCPA) since its enactment and many directly contradict each other. The 7th Circuit recently issued its opinion in Preston v. Midland Credit Mgmt., No. 18-3119, 2020 U.S. App. LEXIS 1775 (7th Cir. Jan. 21, 2020) finding printing "TIME SENSITIVE DOCUMENT" on a mailing envelope constitutes a violation of § 1692f(8) of the FDCPA which directly contradicts 5th and 8th circuits’ decisions allowing a "benign language" exception to that provision.

In December 2016, when Bankruptcy Rule 3002.1 was enacted, the mortgage industry worried about the increase in administrative work and the cost of noticing and keeping track of fees and expenses while a borrower was in bankruptcy.  The rule appeared to be quite simple: the fees and costs the debtor incurred were to be noticed with the court within 180 days of their incurrence.  There were already in place industry standards of what the usual fees would be, so no one truly believed that this would cause concerns or that many of the Post-Petition Fee Notices would be objected to.  Additionally, the Note and/or Security Deed usually contain a provision that allows for the collection of bankruptcy post-petition fees.  Only a few years later are we learning that this is not the case.

LOGS Network is pleased to announce the appointment of Mark Carey to the position of Chief Financial Officer ("CFO") effective January 27, 2020.

​Mark has over twenty-five years of accounting, auditing, and financial operations experience and most recently served as Executive Vice President of Finance and Accounting for a360inc.  Before his role with a360inc, he served as Controller for Financial Compliance with The LOGS Group, LLC. 
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Mark is a Certified Public Accountant and holds a B.A. in accounting and a Masters of Tax degree.  

2019 was a busy year for the default servicing legal community in New York State that culminated with an eventful month of December.  As the year came to a close, state laws were enacted relating to marketing, origination, and management of reverse mortgage products that fall under HUD’s home equity conversion program for seniors; the right of the city, village, or town in which the property is located to commence a court proceeding to compel any mortgagees with completing foreclosure actions on abandoned or vacant properties; and standing defense in foreclosure actions.