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 Legal Descriptions: When Is a “Boo-Boo” Fatal (Round 1)?

In re Thulis, 474 B.R. 668 (Bankr. W.D. Wis. 2012) – Typically an unrecorded mortgage will be void as against a bona fide purchaser under state law.  This in turn will allow an unrecorded mortgage to be avoided in a bankruptcy using … Continue reading

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

Of Sales and Leases: Can a Bankrupt Landlord Sell Free and Clear of a Tenant’s Interest?

In re Zota Petroleums, LLC, 42 B.R. 154 (Bankr. E.D. Va. 2012) – Zota addresses the interaction between (1) a sale free and clear of interests under Section 365(f) of the Bankruptcy Code and (2) a tenant’s right to retain possession under … Continue reading

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

Construction Claims: Trust Funds Can Go Poof

McDonald v. Little Limestone, Inc. (In re Powers Lake Construction Co.), 482 B.R. 803 (Bankr. E.D. Wis. 2012) – A typical trust fund statute provides that payments to a construction contractor are treated as funds held in trust until its … Continue reading

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

Perfecting Manufactured Home Liens: Variations on a Theme

Kinzalow v. Clayton Bank & Trust (In re Value Investment Properties, LLC), 481 B.R. 403 (Bankr. E.D. Tenn. 2012) – Determining the priority of liens in manufactured homes owned by the debtor raised the standard question of how to classify … Continue reading

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

Mortgagees Beware: Your Dragnet May Have a Hole In It

Peoples National Bank, N.A. v. Jones, 482 B.R. 257 (S.D. Ill. 2012) – In Jones, the district court reversed the bankruptcy court and held that a standard dragnet clause in a mortgage was not sufficient to secure an advance made by … Continue reading

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

Bankruptcy Sale Offers: Highest Is Not Always Best

In re Diplomat Construction, Inc., 481 B.R. 215 (Bankr. N.D. Ga. 2012) – Is there an obligation to sell to the highest bidder in a bankruptcy sale?  In Diplomat Construction, the court approved a sale to a bidder that offered less … Continue reading

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