Judges Can Void Some Foreclosed Mortgages, Pa. Court Says

Law360, Philadelphia (August 9, 2013, 5:36 PM EDT) -- The Pennsylvania Superior Court ruled Thursday that federal law does not prevent judges from voiding mortgage agreements through counterclaims brought during foreclosure proceedings, affirming a lower court's ruling voiding the mortgage agreement for a woman whose closing agent absconded with nearly $80,000.

In a precedential ruling, a three-judge panel found that while the federal Financial Institutions Reformation, Recovery and Enforcement Act — or FIRREA — prevented a Clearfield County judge from voiding a mortgage agreement as part of a declaratory judgment bid brought by a homeowner before all administrative remedies were exhausted, the statute did not bar him from sustaining affirmative...

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