Some interesting cases! - Posted by JohnBoy
Posted by JohnBoy on February 15, 2002 at 04:13:40:
I was searching through some cases looking to see if I could find anything pertaining to subordination issues pertaining to lenders losing their 1st position as lien holder over changing terms in a mortgage. Couldn’t find anything on that but I did run across two interesting other cases.
BTW, does anyone have any references to any cases over subordination described above???
These other two cases involved owners that had filed BK’s.
In one case a debtor filed chapter 13 BK against the lender that had a mortgage on his personal home.
The debtors tried to get the lender’s claim of $71,335 reduced to a secured debt of $23,500, the fair market value, and have the remaining balance as an unsecured claim which would have meant under a chapter 13 the lender would have recieved nothing on the unsecured amount! LOL
In another case the debtor filed a chapter 7 discharging his personal liability for his loan secured against his property. The bank the reinstated the foreclosure proceedings as their right after the chapter 7 and then right before the sale the debtor filed chapter 13 listing the lender’s claim against his “estate”! LOL
Some of the things these attorney’s come up with! I’d have to give a thumbs up for their creativity and efforts! LOL
If anyone is interested in reading the cases they are:
NOBELMAN v. AMERICAN SAVINGS BANK, 508 U.S. 324 (1993)
JOHNSON v. HOME STATE BANK, 501 U.S. 78 (1991)