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Statutory Interpretation Real Estate Settlement Procedures Act

Wisconsin Law Journal; Milwaukee (Apr 23, 2018).

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7th Circuit Court of Appeals

Case Name: Kelly Jean Linderman v. U.S. Bank National Association

Case No.: 17-1770

Officials: EASTERBROOK, KANNE, and SYKES, Circuit Judges.

Focus: Statutory Interpretation Real Estate Settlement Procedures Act

Kelly Jean Floyd bought a home in 2004 and lived there with her ex-husband, their four children, and her parents. In June 2013 her mother asked her to move out to reduce intra-family conflicts. Floyd leftand she also stopped paying the loan that is secured by a mortgage on the house. A few months later her mother departed (her father had died years earlier), leaving the house occupied by a single daughter, who moved away in May 2014.

The unoccupied structure was vandalized; thieves removed its copper pipe and wiring. U.S. Bank, which owns the note and mortgage, started foreclosure proceedings in March 2014; Floyd asserts that she was not notified. A default judgment was entered, then vacated in June 2015 at her request. (The parties have not told us what has happened in the foreclosure case since then.) In 2014 Floyd remarried and took the name Linderman, which we use from now on. She has divorced the new husband and has never reoccupied the home (or resumed paying off the loan)though in August 2015, with the aid of an inheritance, she did buy another house nearby. She lives in that house today.

The 2014 vandalism produced insurance money that was sent to the Bank, to be held in escrow for use in making repairs or as additional security. Linderman hired a homerepair contractor, and early in 2015 the Bank disbursed $,000 from the escrow toward the cost of repairs. The contractor abandoned the job in April 2015, however, telling Linderman that it was not confident that she could pay the full cost of its work. The house...