Some interesting cases! - Posted by JohnBoy

Posted by Ben (NJ) on February 15, 2002 at 11:29:58:

sorry, its arc_2000 not hyphen

www.creonline.com/www.board/messages/arc_2000//sep00/92157html.

(Is there an easier way to do these links, they are so annoying. Can’t we do a hyperlink kind of thing on this site?

Anyway, no, I am not familiar with any subordination cases such as the ones you refer to. i will keep an eye out if I come across any.

Ben

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.

Get this:

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)

and

JOHNSON v. HOME STATE BANK, 501 U.S. 78 (1991)

If you like this kind of stuff… - Posted by Ben (NJ)

Posted by Ben (NJ) on February 15, 2002 at 09:48:59:

check out this thread:

www.creonline.com/wwwboard/messages/arc-2000//sep00/92157html.

Fascinating !

Re: If you like this kind of stuff… - Posted by JohnBoy

Posted by JohnBoy on February 15, 2002 at 10:28:45:

The link doesn’t work.

Do you happen to know of any past cases involving subordination issues over a lender changing the terms of the mortgage without getting the other lien holders to subordinate?