Lenders should be aware of a recent Bankruptcy Court decision that barred a lender from obtaining certain costs when it did not comply with a notice requirement in a mortgage.

On June 5, 2014 the United States Bankruptcy Court in In re Demers, BR 13-11539, 2014 WL 2620961 (Bankr. D.R.I. June 5, 2014) ruled that it is inequitable to shift the costs of a creditor’s error in proceeding with the foreclosure process to the debtor when the creditor sent an unspecific and unclear notice and consequently was not entitled to proceed.