Balancing the Scales of Justice for Pro Se Homeowners

Due process requires a do over of constructive notice in New Century BK

Posted by on Sep 17, 2014

Due process requires a do over of constructive notice in New Century BK

Ralph and Molly White went to bat for all borrowers of New Century Mortgage.  Doing what most thought was the impossible, the Whites challenged the cavalier and biased ruling of Judge Kevin Carey in regards to “constructive notice” of the bar date .  Recognizing that New Century Mortgage had specifically and deliberately designed the constructive notice  to notify New Century Mortgage financial partners but not borrowers, the District Court ruled that the constructive notice required a “do over”.

This is far from over as the liquidating trust most definitely will appeal this ruling;  but what this appeal does do is validate what many of the borrowers have been saying- the bankruptcy improperly, unethically, and immorally allowed the debtors to ignore the largest segments of potential claimants.   This should embolden borrowers across the nation to continue to file claims against one of the largest predatory lenders this country has ever known.

The White’s brief isn’t fancy; it doesn’t go into any long diatribes of the unfairness of it all. It is simple, direct and to the point. Borrowers had no voice from the beginning of this bankruptcy; and the court’s leniency in allowing the debtors to ignore the largest segment of potential unknown claims was, and is, a violation of those claimants due process rights.

I say – hail to the heroes of New Century Borrowers – Ralph and Molly White. Thank you for doing what many thought was the impossible!


Opening Brief from Whites

Respondents Brief

Reply Brief to Respondents Brief

Appendix for Appeal Briefs





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