In re Alparone, No. 10-24806; U.S. Bankruptcy Court (DNJ); opinion by Lyons, U.S.B.J.; filed June 4, 2012. DDS No. 42-6-xxxx [10 pp.]
Plaintiff-debtors Francis and Carole Alparone refinanced the mortgage on their residence with Mortgage Now Inc. In less than a year, they defaulted and a foreclosure action was filed in New Jersey state court. Plaintiffs failed to answer and a default was entered against them. The mortgage was assigned to Ocwen Loan Servicing. Its motion for final judgment by default had not been entered when plaintiffs filed a petition under Chapter 13 of the bankruptcy code. Their Chapter 13 plan did not propose any payments to Ocwen. An addendum to the plan disclosed their intention to file an adversary proceeding to void the mortgage for violations of the Truth in Lending Act, 15 U.S.C. § 1601 et seq. The court confirmed the plan but granted relief from the automatic stay for Ocwen to pursue its rights since the plan only promised litigation for it.
