Posts

Forgotten Second Mortgage

During the height of the great recession six or seven years ago, many of my clients with upside down mortgages opted to simply do what I referred to as the unofficial lien strip, whereby they simply did not make the second mortgage payments,…
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Second Mortgages Cannot be Stripped in Chapter 7 Cases

The United States Supreme Court held this week in Bank of America v. Caulkett that wholly unsecured second mortgages cannot be stripped in Chapter 7. “Wholly unsecured” means that the house is worth less than the first mortgage balance.…
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SCOTUS hears arguments in chapter 7 lien strip case

This week the United States Supreme Court heard oral arguments in a case involving stripping off a wholly unsecured junior mortgage in a chapter 7 case. There has been a split amongst the federal circuits, with some permitting it, but most not…
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Supreme Court to hear cases regarding chapter 7 lien stripping

The Supreme Court granted certiorari in two Chapter 7 lien strip cases today. Cases are Bank of America v Toledo-Cardona and Bank of America v Caulkett. In the 11th Judicial Circuit, court have permitted chapter 7 debtors to strip wholly unsecured…
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Eighth Circuit Permits Lien Stripping

In a ruling issued August 28, 2014, the Eighth Circuit Court of Appeals followed the other seven federal appellate courts in permitting stripping of a wholly unsecured junior residential mortgage in a chapter 13 plan. Jamie and Keeley Schmidt…
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8th Circuit Court of Appeals takes “Lien Stripping” case under advisement

The 8th Circuit of Appeals heard arguments on Wednesday March 12 in a case involving whether wholly unsecured junior second mortgages can be stripped in chapter 13 bankruptcy. A ruling will be issued “in due course,” which will likely be…
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8th Circuit dismisses appeal challenging chapter 13 lien strip

A long-awaited decision was issued last week by the 8th Circuit Court of Appeals, dismissing a chapter 13 trustee’s appeal of a decision by the 8th Circuit Bankruptcy Appellate Panel, which had noted that the concept of lien stripping is noncontroversial…
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Lien Stripping

More on the ongoing lien stripping appeal that is before the 8th Circuit Court of Appeals. A decision is expected by summer, and I expect it will be resolved in favor of homeowners. Lien Stripping Approved An appellate court has approved stripping…