Lenders Can’t Hide from Consequences of Misapplication of Mortgage Payments

Who knew 20 years ago how apparently hard it is to account for money paid to you? Even if accounting for money was your business?

Today’s raft of mortgage accounting issues were not ones I foresaw when I became a bankruptcy lawyer.Yet every day we encounter cases where the foreclosure notice follows the “all current” filing at the close of a Chapter 13 case.

The addition of Section 524(i) to the Bankruptcy Code in 2005 at least recognized the problem of mortgage accounting in a world where mortgages change hands like business . . .

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moran_cathy
Head of Moran Law Group

Cathy Moran has headed her own small firm Moran Law Group in Redwood City, California, for nearly 30 years. Family law and tax issues as they play out in bankruptcy are areas of particular interest to Cathy.

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