Foreclosure Defense and South Carolina Matrix Decision | South Carolina Bankruptcy Lawyer Blog

Foreclosure Defense and South Carolina Matrix Decision | South Carolina Bankruptcy Lawyer Blog: "A recent South Carolina case, Matrix Financial Services Corporation v. Frazer provides common sense help. Matrix says, in effect, if lenders don’t follow South Carolina law when closing mortgage loans, they may not be able to foreclose their mortgage when the borrower defaults.

The South Carolina Supreme Court explained the problem lenders may face as follows:

[I]n this case Matrix comes to the court with unclean hands, and is thus barred from seeking equitable relief. Matrix hired LandAmerica OneStop to perform the title search, prepare the documents, and close the refinance loan–all admittedly without the supervision of a licensed attorney. Thus, Matrix has committed the unauthorized practice of law in closing the refinance mortgage, clearly violating South Carolina law. The dissent’s protestations aside, a party cannot violate the law and expect not to bear the consequences of its actions. This Court will not grant a discretionary, equitable remedy to a party who refused to follow the laws of this state. Therefore, even if Matrix were able to satisfy the requirements for equitable subrogation, Matrix would not be entitled to that equitable remedy because it has unclean hands."