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Many questions, few answers in home lawsuit (access required)

Occupant kept making payments on house she didn’t own, and bank continued to accept them

Ignorance of the law is no defense. But how about the facts? How long, for example, can a lender feign ignorance of the facts and collect on a mortgage loan after the underlying debt has been satisfied by a deed in lieu of foreclosure? The answer: As long as the borrower continues to pay, U.S. District Judge Joseph F. Anderson Jr. held recently in Martin v. American General Finance Inc., a case that aptly depicts the confusion resulting when a note and mortgage go their separate ways.
By Sharon McCloskey
Published: November 18, 2011
Time posted: 3:22 pm
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