View Cart | 0 Items in Cart | Checkout
Stop Foreclosure Forms Forms Mission FAQ Links Information and News Contact  
 
 

 FORECLOSURE DEFENSE NEWS AND INFORMATION - North Carolina

 

Foreclosure defense forms must be drafted to comply with the laws of your State. Standardized forms for all States are generally not acceptable. We provide attorneys and you with the state-specific forms that are correct and valid. Free Previews available. All forms are available in Word format.





NORTH CAROLINA COURT OF APPEALS RULES THAT PLAINTIFFS MAY PROCEED WITH CLAIMS THAT MORTGAGE WAS THE RESULT OF FRAUD AND DECEPTIVE TRADE PRACTICES

2010-06-07





NORTH CAROLINA COURT OF APPEALS RULES THAT PLAINTIFFS MAY PROCEED WITH CLAIMS THAT MORTGAGE WAS THE RESULT OF FRAUD AND DECEPTIVE TRADE PRACTICES

The North Carolina Court of Appeals recent decision in the case Whisnant v. Carolina Farm Credit (N.C. App. 5-18-2010) sets forth a useful summary of the legal claims that property owners may considering utilizing in their efforts to defendant against foreclosure sales in North Carolina.  In the Whisnant case, the plaintiffs filed a complaint in state court seeking an injunction to stop the defendant financial institution from proceeding with a foreclosure sale of their property.

The lower court ruled in favor of the defendant, and granted it summary judgment dismissing the plaintiffs’ complaint.  The Court of Appeals reversed, finding that the plaintiffs had raised legitimate factual issues as to whether plaintiffs were entitled to the considerable legal protections provided by North Carolina General Statutes to individuals who execute loan documents for the benefit of third parties.  In legal parlance, one who executes the contract solely to provide security for the benefit of another is known as an “accommodation party” or surety.  Here, the plaintiffs executed the loan documents solely for the benefit of their extended family members.  Under North Carolina law, creditors have an affirmative obligation to inform a surety of any information that “the creditor know or has good grounds for believing that the surety is being deceived or misled.”  Id.

The Court of Appeals concluded that the plaintiffs had raised triable issues of fact with respect to their legal claims against the lender sounding in negligence, actual fraud, fraud in the inducement, and unfair and deceptive trade practices.

Mortgage Foreclosure Information and News for all Fifty States.

Select Your State

AlabamaAlaska
ArizonaArkansas
CaliforniaColorado
ConnecticutDelaware
FloridaGeorgia
HawaiiIdaho
IllinoisIndiana
IowaKansas
KentuckyLouisiana
MaineMaryland
MassachusettsMichigan
MinnesotaMississippi
MissouriMontana
NebraskaNevada
New HampshireNew Jersey
New MexicoNew York
North CarolinaNorth Dakota
OhioOklahoma
OregonPennsylvania
Rhode IslandSouth Carolina
South DakotaTennessee
TexasUtah
VermontVirgin Islands
VirginiaWashington
Washington DCWest Virginia
WisconsinWyoming



   

  Disclaimer
This compendium of mortgage foreclosure forms, information and news is provided to homeowners, legal organizations, and the general public as a free public service by Empire State Legal Forms, Inc. The information and forms provided on this site are not legal advice, but general information on legal issues commonly encountered. We are not a law firm, and our forms are not a substitute for an attorney or law firm. We provide legal forms at your specific direction. because the law changes rapidly, we cannot guarantee that all of the information on this site is completely current. The law is different from jurisdiction to jurisdiction, and may be subject to interpretation by different courts. The law is a personal matter, and no general information or legal tool can fit every circumstance. Furthermore, the legal information contained on this site is not legal advice and is not guaranteed to be correct, complete or up-to-date. Therefore, if you need legal advice for your specific problem, or if your specific problem is too complex to be addressed by our tools, you should consult a licensed attorney in your area.

  © 2024 Empire State Legal Forms, Inc. - All Rights Reserved.