Author Archives: BankruptcyRealEstateInsights

About BankruptcyRealEstateInsights

Vicki R. Harding was a partner in the Detroit office of Pepper Hamilton LLP who moved to Arizona seeking warmer weather. Ms. Harding continues to handle commercial transactions with an emphasis on real estate and bankruptcy issues (but no longer owns a snow shovel).

Mortgage Errors: How Not to Correct a “Boo-Boo”

Seelen v. Couillard (In re Couillard), 486 B.R. 466 (Bankr. W.D. Wis. 2012) – “Whether one is baking a cake, building a house, or recording a mortgage, sometimes even the slightest deviation from the directions can lead to catastrophe.  Cakes don’t … Continue reading

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Equitable Subordination: Lenders Beware – It Is Not Enough That Actions Are Permitted Under the Loan Documents

In re Aida’s Paradise, LLC, 45 B.R. 806 (Bankr. M.D. Fla. 2013) – A chapter 11 debtor sought to equitably subordinate a lender’s unsecured deficiency claim based on actions that it claimed interfered with operation of its property.  The lender responded … Continue reading

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The Continuing Saga of Mortgage Errors: Not All “Boo-Boos” Are Fatal

The Willows II, LLC v. Branch Banking & Trust Co. (In re The Willows II, LLC), 485 B.R. 528 (Bankr. E.D.N.C. 2013) – A deed of trust defined the secured indebtedness as a note and related documents, together with future advances.  … Continue reading

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Classification of Mortgage Deficiency: The Difference Between a Veto Right and Disenfranchisement

In re 18 RVC, LLC, 45 B.R. 492 (Bankr. E.D.N.Y. 2012) – A chapter 11 debtor proposed to place a mortgagee’s deficiency claim into a separate class from general unsecured claims so that the deficiency claim could not prevent the unsecured class … Continue reading

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Bankruptcy Sales: Can LLC Interests Be Sold Over a Member’s Objections?

Horizons A Far, LLC v. Richard Webber (In re Soderstrom), 484 B.R. 874 (M.D. Fla. 2013) – The debtors (Soderstroms) owned 50% of Plaza N 15 Partners, LLC.  The bankruptcy trustee (Webber) proposed to sell the debtors’ interests in the limited … Continue reading

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Trying to Undo a Settlement: Bad Liens Don’t Make Bad Settlement Payments

Road & Highway Builders, LLC v. United States, 702 F.3d 1365 (Fed. Cir. 2012) – A secured junior lender who purchased property at a senior lender’s foreclosure sale paid $100,000 to the Internal Revenue Service to induce it to release a … Continue reading

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