Consumers Can’t Void Second Mortgage In Bankruptcy, SCOTUS Rules. According to the bank, there remains a possibility that the second loan would be repaid if the property’s value rose in the future. The company also claimed that after the circuit court ruling, hundreds – if not thousands – of struggling homeowners had moved to nullify their second loans, the AP reports.
findings of fact and conclusions of law pursuant to Federal Rule of Bankruptcy. Procedure. The Second Mortgage was also assigned by MERS to wells. fargo bank. satisfaction- plaintiff filed a complaint in the Superior Court of the. State of.. A. DEBTOR MAY A VOID THE LIEN ON THE PROPERTY.
WASHINGTON (AP) – A unanimous Supreme Court ruled Monday that homeowners who declare bankruptcy can’t void a second mortgage even if the home isn’t worth what they owe on the primary mortgage. The justices ruled in two Florida cases that bankrupt homeowners can’t "strip off" a second loan even if they are underwater on the first loan.
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The debtors sought bankruptcy protection under Chapter 7 and asked the court to void (or "strip off") the second mortgages. The bankruptcy court granted the motions. Bank of America appealed to the U.S. 11th Circuit Court of Appeals in Atlanta, which upheld the bankruptcy judge’s decisions.
The Supreme Court dealt with the issue whether a debtor can void a second mortgage that is completely underwater or when the property is worth less than the first mortgage. The high court said that the second mortgage may not be voided if it is not a disallowed secured claim as defined under Section 502 of the Bankruptcy Code.
Anti-Modification Rule Relating to Loans on a Homeowner's Principal Residence. The U. S. Supreme Court has prohibited lien stripping in chapter 7 cases. ii.. Junior liens can be stripped away in a bankruptcy case only when the. unsecured creditors will only receive a significant payment in high income cases where.
Real Estate Broker Convicted Of Bank Fraud In Orlando Area Mortgage Scheme · And the state only recently disciplined Rick Roloff, a Pewaukee loan originator who pleaded guilty to bank fraud charges in a scheme that prosecutors say cost lenders more than $100,000.