The Court stated conclusively that a Debtor in a Chapter 7 Bankruptcy may not void a junior mortgage lien under §506(d) even when the value of the senior mortgage lien exceeds the value of the Debtor's home if the junior claim is secured by a lien and allowed under §502 of the Code.Read More
Dual Tracking is the industry name for the practice of letting a foreclosure case tick on even while the homeowner seeks to modify their mortgage loan. The idea is simple: the Bank will take whichever solution comes through first – a modification or a foreclosure. The problem is that the Bank holds all the cards:...Read More
The Economy has been sputtering: struggling valiantly but with little to show for it. Case in point: Is your home still underwater? For most people the answer is still yes - even as markets around the country rebound. So today we address a deceptively simple question: What is a mortgage and how does it work?...Read More
Foreclosure defense practice has become a veritable cottage industry over the past decade and it is common for Clients to expect their lawyer to do more than fight. They want to delay "by any means necessary." But the Courts still regard the law as a genteel profession. What Clients see as run of the mill...Read More
For Debtors, Chapter 7 Liquidation is the ultimate relief, while Chapter 13 and 11 Reorganization offers an opportunity to reduce their Debtor’s payments in light of their income. In either type of case however, the Creditor is not entitled to anything until it has filed is Proof of Claim.Read More
In this carefully written Opinion Judge Schmetterer evaluates the arguments in a Motion to Dismiss an Adversary Complaint based on fraudulent behavior. Beyond its examination of Bankruptcy Fraud, this Opinion is notable for its recitation of the ways this former Attorney conned his Client out of money.Read More
One option for those who've gone through Bankruptcy and are looking to borrow again is the FHA Loan. Before the housing bubble burst in 2008 FHA loans were considered the choice for buyers with little credit or bad credit; or for those with low incomes. But since everyone's home value began falling - taking credit...Read More
Domestic support obligations are exempt from discharge in Bankruptcy and entitled to priority payment in a plan of reorganization. The tricky part is determining just what constitutes a "domestic support obligation" entitled to special treatment. Would a spouse's Attorneys' Fees be entitled to special treatment? Interest on unpaid sums? Court sanctions for unpaid support?Read More
The Bankruptcy Judge had the benefit of hearing the Debtor's testimony and deemed her credible: he knew her approach was wrong but thought she was sincere in her beliefs. The Appellate Court focused on the telltale signs that the Debtor had not been sincere and reasoned that it couldn't trust her as there were too...Read More
The Bankruptcy Court pries apart a Motion for Judgment on the Pleadings brought by banks and servicers that claim to be entitled to collect mortgage payments from the Debtor while peering into the world of securitized mortgages - the process of bundling loans into trusts, slicing trusts into securities, and trading those securities on Wall...Read More