Mortgage

Courts Hopelessly Split on Modifying Mortgages on Mixed-Use Residential Properties

Judge Buchanan collects authorities on all sides of two questions befuddling courts everywhere.

Chapter 13 Can Cure a Home Mortgage Default Even After a Foreclosure Auction

Section 1322(c) allows a debtor to cure a mortgage default so long as the foreclosure deed was not recorded before bankruptcy.
9th Circuit Sep 19, 2018

BAP Narrowly Reads Section 506(d) on Voiding Liens Following Claim Disallowance

A claim must be disallowed on the validity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit BAP holds.
4th Circuit Maryland Sep 25, 2018

Security Interest Perfected on the Filing Date Remains Valid if It Lapses Later

The addition of Section 362(b)(3) is held not to affect the ‘freeze rule’ with regard to lapsing security interests.

Chicago Judge Refuses to Confirm a ‘Step’ Chapter 13 Plan

Judge Barnes won’t allow a chapter 13 debtor’s counsel to be paid at the expense of secured creditors.

Requiring Conduit Mortgage Payments Is Ok Despite Costing the Debtor $5,300

Bankruptcy judge says a chapter 13 debtor receives ‘several benefits’ from paying 8% in commissions on mortgage payments through the trustee.
10th Circuit Aug 14, 2018

Four Circuits Agree on Calculating an Exemption Impairment Under Section 522(f)

The circuits agree on a method for calculating an exemption impairment that disadvantages debtors.