South Carolina Business Law Blog

On May 6, 2010, the South Carolina Court of Appeals issued a ruling affirming a harsh result against Wachovia for its failure to have loan closing documents reviewed, and the closing supervised by, an independent attorney. In Wachovia v. Coffey , borrower Dr. Coffey took out a $125,000 home equity line of credit with Wachovia. Wachovia closed the loan directly without the involvement of counsel. Dr. Coffey’s wife was unaware of the closing. Dr. Coffey signed a mortgage document purporting to secure the line of credit with their home, despite the fact that Mrs. Coffey was the sole owner on the title. Wachovia wired the loan proceeds for the purchase of a thirty-six-foot boat. Dr. Coffey paid monthly payments for the boat for the rest of his life, and Mrs. Coffey continued those payments temporarily after his death. Mrs. Coffey believed the loan was secured by the boat, not the home. After Dr. Coffey passed away, Mrs. Coffey sold the boat, with the help of a boat broker. Dur

Thanks to Wes Few for this case and summary. In Republic Federal Bank v. Doyle , Florida's Third District Court of Appeals ruled that although the power to grant a continuance is generally within the discretion of the trial court, "benevolence and compassion" does not constitute a lawful basis to grant same. While denying foreclosing lender's petition to overrule the trial court's grant of continuance of an August 29, 2009 foreclosure sale date based upon not wanting to "see anybody lose their home," the court determined that the trial court's "continuance was an abuse of discretion in the most basic sense of that term." The debtor had previously postponed a November 4, 2008 foreclosure order by filing for bankruptcy -- a filing which was later dismissed as frivolous. The Court noted that the statute governing foreclosures required the foreclosure sale to occur not more than 35 days after the entry of judgment. The Court of Appeal d