Monthly Archives: November 2018

Disallowed Claims: Just Because a Claim Is Rejected Does Not Mean the Underlying Lien Disappears

Shoemake v. SN Servicing Corp., 586 B.R. 741 (M.D. Tenn. 2018) – Chapter 13 debtors brought an adversary proceeding against mortgage loan servicers (1) seeking a determination that a deed of trust lien was extinguished when a proof of claim filed … Continue reading

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Wraparound Mortgages: Sorting Things Out

In re Tejeda, 586 B.R. 831 (Bankr. W.D. Tex. 2018) – In connection with acquisition of real property a debtor executed a wraparound mortgage in favor of the sellers. The original note and deed of trust executed by the sellers remained … Continue reading

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Designating Votes: Selfish Informed Self Interest v. Untoward Advantage

Pacific Western Bank v. Fagerdala USA-Lompoc, Inc. (In re Fagerdala USA-Lompoc, Inc.), 891 F.3d 848 (9th Cir. 2018) – A secured creditor sought to block a Chapter 11 plan of reorganization by purchasing claims from some of the creditors in the … Continue reading

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Avoiding an Unrecorded Mortgage: Variations on a Theme

Miranda v. Banco Popular De Puerto Rico (In re Mercado), 587 B.R. 224 (Bankr. D. P.R. 2018) – A chapter 7 trustee sought to avoid an unrecorded mortgage and preserve the lien for the benefit of the bankruptcy estate. The decision … Continue reading

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