ILNews

Court can’t modify mortgage without both parties’ consent

Back to TopCommentsE-mailPrintBookmark and Share

A trial court doesn’t have the authority to modify a mortgage agreement without the consent of both parties participating in a settlement conference if they don’t agree to the terms of a foreclosure prevention agreement, the Indiana Court of Appeals ruled.

In Nationstar Mortgage, LLC v. Jeffrey A. Curatolo, et al., 45A03-1211-MF-469, Nationstar Mortgage LLC appealed the trial court order modifying its mortgage agreement with Jeffrey Curatolo. Curatolo executed the $245,000 mortgage in 2006, which was assigned to Nationstar in 2010. It filed its complaint to foreclosure in September 2011.

The parties entered into a foreclosure settlement conference, as allowed under I.C. 32-30-10.5, in which Curatolo successfully completed a three-month plan set up by Nationstar. But the mortgage company wanted new financial documents because of a discrepancy in Curatolo’s stated income and then sought to have Curatolo pay an additional $300 for a three-month period.

The trial court deemed these actions as a bad faith maneuver and modified the mortgage agreement.

“[N]owhere does the statute give a trial court the authority to enter a final order modifying the mortgage agreement,” Chief Judge Margret Robb wrote. “The fact that the legislature itself could not have impaired the contractual obligations of the parties lends further support to our conclusion it did not intend to give the courts that authority. Because the mortgage agreement was based upon the parties’ mutual assent, they must both agree to any permanent modification. Nor is this a case where the court was merely interpreting or enforcing a previously entered into agreement.”

Curatolo argued that the modification was a proper sanction for Nationstar’s misconduct.

“And while the trial court found that Nationstar’s behavior evidenced bad faith, we cannot agree that requesting additional documentation in response to a change of income or requesting an additional $300 per month from Curatolo was bad faith. Curatolo was not entitled to a final foreclosure prevention agreement with terms to his liking,” Robb wrote.

The COA ordered more proceedings on the matter consistent with this opinion. Robb noted that this decision should not be read to limit the ability of the parties to enter into a mutually agreed upon foreclosure prevention agreement. In that case, the trial court may dismiss or stay the foreclosure as provided by I.C. 32-30-10.5-10(e).  

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Residents can't vote under our current system? Okay, let's replace the system with another system where they can't vote. Yeah, that's the ticket!

  2. It's an appreciable step taken by the government to curb the child abuse that are happening in the schools. Employees in the schools those are selected without background check can not be trusted. A thorough background check on the teachers or any other other new employees must be performed to choose the best and quality people. Those who are already employed in the past should also be checked for best precaution. The future of kids can be saved through this simple process. However, the checking process should be conducted by the help of a trusted background checking agency(https://www.affordablebackgroundchecks.com/).

  3. Almost everything connects to internet these days. From your computers and Smartphones to wearable gadgets and smart refrigerators in your home, everything is linked to the Internet. Although this convenience empowers usto access our personal devices from anywhere in the world such as an IP camera, it also deprives control of our online privacy. Cyber criminals, hackers, spies and everyone else has realized that we don’t have complete control on who can access our personal data. We have to take steps to to protect it like keeping Senseless password. Dont leave privacy unprotected. Check out this article for more ways: https://www.purevpn.com/blog/data-privacy-in-the-age-of-internet-of-things/

  4. You need to look into Celadon not paying sign on bonuses. We call get the run

  5. My parents took advantage of the fact that I was homeless in 2012 and went to court and got Legal Guardianship I my 2 daughters. I am finally back on my feet and want them back, but now they want to fight me on it. I want to raise my children and have them almost all the time on the weekends. Mynparents are both almost 70 years old and they play favorites which bothers me a lot. Do I have a leg to stand on if I go to court to terminate lehal guardianship? My kids want to live with me and I want to raise them, this was supposed to be temporary, and now it is turning into a fight. Ridiculous

ADVERTISEMENT