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Choice of Law and Deferred Payment Obligations


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So here is the story up to now;

 

Foreclosure in Arkansas

Owners moved to Arizona prior to non-judicial foreclosure

Suit filed against owners in Arizona just a few days prior to the 1 year SOL by the mortgage insurance company. (Claiming subrogation rights)

 

 

Plaintiff claims a payment made to Note holder for the full amount of the deficit. However, the MI in question is currently under an Order of Supervision in North Carolina and is prohibited from paying in excess of 60% of its claims. The other 40% is being held by the MI and the North Carolina Department of Insurance has allowed them to utilize the funds as a statutory asset in order to help it meet its minimum holding requirements. The other 40% is listed as a deferred payment obligation. In short, plaintiff only paid 60% but blatantly states they paid the full amount. Wouldn't this be considered “miscalculation of debt” and be grounds for dismissal? Or, do they have a legal right to collect an an amount that is only hypothetically going to paid at some point in the future?

 

Any help and/or links to relevant law/cases would be GREATLY appreciated.....I have to submit the response to MSJ Monday morning.

 

Thanks in advance.

 

(My apologies to anyone who wasted their time reading my first post....I provided incorrect information concerning the SOL.)

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Arkansas law will apply because that is where the property and mortgage was that was foreclosed on regardless of where the home owner lives now.  As for the SOL: your time line is too hard to follow it is best that you consult an attorney on that one.

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Thanks, Clydesmom. Any thoughts on whether the PMI can sue for the full deficiency even though they did not pay out the full amount? I can't find ANY information about this, and I'm usually pretty good at finding this kind of information!

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