November 2016 - End of the Road?

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TH E M R EP O RT | 47 O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T SERVICING THE LATEST LOCAL EDITION THE LATEST Florida Court Decision May Bring Difficulties for Servicers GAP BETWEEN JUDGMENT AND SALE DATES COULD OPEN PROPERTIES UP TO MUNICIPAL LIENS. FLORIDA // Recently, a court case in Florida has caused controversy due to its potential to cause difficulty for servicers in the disposition of foreclosed properties. This particular case, Ober v. Town of Lauderdale- By-The-Sea, brings into question the application of Florida's lis pendens statute to liens placed on property between a final judgment of foreclosure and the judicial sale. The court's decision determined that liens placed on a property during that period of time are not extinguished by the statute. In Ober v. Town of Lauderdale-By-The-Sea, a mu - nicipality recorded seven liens on the property, relating to code violations between 2009 and 2011. The case notes that each violation occurred after the loan entered final judgment in 2009. The property was sold in 2012, with a certificate of title being issued. The municipality argued that the lis pendens should be deemed to terminate on the date of final judgment, which would mean that it would not extin- guish the relevant liens placed on the property subsequent to final judgment. The court agreed and determined that "a lis pendens bars liens only through final judgment, and does not affect the validity of liens after that date, even if they are before the actual sale of the property." The result of this case could present a challenge to servicers in Florida that take possession of distressed properties via the foreclosure process. The gap period between the time that final judgement is entered in the foreclosure and the sale date is left exposed to the possibility that municipal bodies could place a lien on the property, complicat- ing its alienability. The case is pending appeal. Six Servicers Speak at Affinity Management Symposium THE EVENT GIVES LEGAL PROS TOOLS TO PLOW FORWARD DURING DIFFICULT TIMES. TEXAS // Affinity Consulting Group hosted the Third Annual Management Symposium October 20 to 21 in Dallas. This year's two-day training event focused on how successful lead- ers can transform their law firms during challenging times. Each year the Symposium brings together attorneys and legal professionals in default firms. Affinity says that the default services legal industry knows now, more than ever, that law firms need to be poised to anticipate and adapt to change. The Symposium offered two days of training dedicated to giving partners, managers and team leaders the business tools needed to transform their firms' processes, technologies, and culture to create success even in times of change and uncertainty. "After attending the first Management Symposiums, I knew I did not want to miss another!" said Robyn Padgett, CEO of Timothy D. Padgett, P.A. "Affinity does a tremendous job openly sharing information on how better to cultivate, develop and manage the operation of our firm. It's easy to buy in when you trust the people delivering the message!" This year, Affinity has an- nounced a few additions to the speaker lineup for the Symposium. Michael Zevitz, Shareholder at South Law, and Ed Kirn, Shareholder at Powers Kirn spoke to firms about improvements they have made in their firms in the "In the Trenches" session. The Servicer Panel at the Symposium boasted an esteemed lineup of industry experts, led by Roy Diaz, Managing Shareholder at SHD Legal Group, the panel currently consisted of James McPherson, Litigation Supervisor, VP at Central Mortgage; Daniel Chilton, Assistant General Counsel, North American Operations & Technology at Citigroup; Cheryl Marchant, SVP, Default Services at Freedom Mortgage; Paul Johannsson, Senior Manager and VP-Foreclosure, Bankruptcy and Complex Division at BSI; Rosalie Escobedo, Program Manager- VA Support at VRM Mortgage Services; and last but not least Lance Bell, First VP, Default Servicing at PennyMac Loan Services. Affinity's management consul - tants brought real world exam- ples and sample work products to share with Symposium par- ticipants, allowing them to their firms and make real differences in the way their law firms work. "In an industry of constants ups and downs, it is critical that firms learn to adapt and excel during these opportunities for growth and evolution," remarked Erica Fujimoto, Affinity Director of Default Services. "It is our honor to work together annu - ally to create an atmosphere of cooperation, collaboration, and in- novation to help the leaders in the Default Services industry develop the skills and tools that they need to delight their clients every day." LOCAL EDITION SERVICING The result of this case could present a challenge to servicers in Florida that take possession of distressed properties via the foreclosure process.

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