Manufactured Homes: Real or Personal Property – Who Knows?

Paddock, LLC v. Bennett (In re Bennett), 917 F.3d 676 (8th Cir. 2019) –

A creditor holding a security interest in a manufactured home contended that its claim was secured only by real property that was the debtors’ principal residence. Consequently, it objected to a chapter 13 debtors’ plan on the grounds that it improperly modified the creditor’s claim. The bankruptcy court overruled the objection, the Bankruptcy Appellate Panel (BAP) affirmed, and the creditor appealed to the Eighth Circuit. Continue reading

Posted in Financing, Real Estate | Tagged | Leave a comment

Avoiding Mortgages: The Saga of Exercising Strong Arm Powers Continues

Harker v. PNC Mortgage Co. (In re Oakes), 917 F.3d 523 (6th Cir. 2019) –

A chapter 7 trustee brought an adversary proceeding to avoid a defectively acknowledged mortgage by exercising a trustee’s strong-arm powers as a bona fide purchaser of real property or a judicial lien creditor. The bankruptcy court denied the mortgagee’s motion for judgment on the pleadings, the Sixth Circuit BAP affirmed, and the mortgagee appealed to the Sixth Circuit. Continue reading

Posted in Financing, Real Estate | Tagged , | Leave a comment

Mortgagee Stay Relief: Make Sure You Know the Scope of the Relief or Else

BMO Harris Bank, N.A. v. Anderson (In re Anderson), 917 F.3d 566 (7th Cir. 2019) –

After a mortgagee obtained relief from the automatic stay so that it could foreclose its mortgage in state court, it returned to the bankruptcy court to assert a deficiency claim. The debtor objected on the basis that claim splitting was prohibited. The bankruptcy court ruled against the debtor, the district court reversed, and the mortgagee appealed to the Seventh Circuit. Continue reading

Posted in Financing, Real Estate | Tagged , , | Leave a comment

TICs: Maybe the Protection of Bankruptcy Will Be the Available If Needed, and Maybe Not

In re Fairfield TIC, LLC, 594 B.R. 852 (Bankr. E.D. Va. 2018) –

The debtor and its co-owners bought a shopping center as tenants-in-common. After the debtor filed bankruptcy, the noteholder secured by a mortgage on the property and a receiver appointed to manage the property moved to dismiss the debtor’s bankruptcy for cause. Continue reading

Posted in Real Estate | Tagged , | Leave a comment

Joint Property Sales: To Successfully Oppose a Sale, You Have to Make Your Case

Desmond v. Francis (In re Francis), 597 B.R. 195 (Bankr. D. Mass. 2019) –

A chapter 7 trustee commenced an adversary proceeding seeking authority to sell property that the debtor co-owned with his wife as tenants by the entirety free of the interests of the wife. The trustee brought a motion for summary judgment that was opposed by the wife. Continue reading

Posted in Bankruptcy Sales, Real Estate | Tagged , | Leave a comment

Avoiding Mortgages: Local Rules Rule

Oliveras v. Banco Popular de Puerto Rico (In re Casanova), 595 B.R. 616 (Bankr. P.R. 2018) –

A chapter 13 trustee brought an adversary proceeding to avoid a bank’s mortgage lien using his strong arm powers as a hypothetical bona fide purchaser of real estate. The case turned on the effect of a lengthy delay in the recording process. Continue reading

Posted in Financing, Real Estate | Tagged | Leave a comment

Reopening a Case: Who Can Upset the Apple Cart?

Plant Materials, LLC v. Alliance Consulting Group, LLC, 596 B.R. 851 (S.D. Miss. 2019) –

A contractor that installed a sand screen at a drying facility previously owned by the debtor that was sold “free and clear” in its bankruptcy filed a motion to reopen the bankruptcy case so that it could assert an administrative expense claim for unpaid services. The bankruptcy court denied the motion and the contractor appealed to the district court. Continue reading

Posted in Bankruptcy Sales, Real Estate | Tagged | Leave a comment