Category Archives: Financing

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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Reverse Mortgages: Ignore Loan Documents at Your Peril

D’Alessio v. CIT Bank, N.A., 587 B.R. 211 (Bankr. D. Mass 2018) – A chapter 13 debtor sought a court determination that he was a “Borrower” for purposes of a reverse mortgage executed by his deceased wife. The mortgagee disagreed contending … Continue reading

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Mortgage Assignee Claims: Hang on To That Promissory Note

In re Benyamin, 587 B.R. 243 (Bankr. S.D. N.Y. 2018) – Chapter 11 debtors objected to a proof of claim that appeared to be filed by a servicer on behalf of an assignee of the original mortgagee. The court considered both … Continue reading

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Mortgagor Claims: There is A Limit to the Ability to Invoke the Assistance of Federal Courts

Zapotocky v. CIT Bank, N.A., 587 B.R. 589 (S.D.N.Y. 2018) – A former debtor sued a mortgagee in federal district court claiming a breach of contract by the lender and challenging a foreclosure judgment entered in state court. This is one … Continue reading

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Bad Faith Filing: A Debtor’s “Business” Must Consist of More Than Litigating with the Mortgagee

In re Encore Prop. Mgmt. of Western N.Y., LLC, 585 B.R. 22 (Bankr. W.D. N.Y. 2018) – A mortgage lender moved to dismiss a chapter 11 case on the grounds that it was filed in bad faith. This was the second … Continue reading

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Defective Mortgages: Variations on a Theme

Harker v. PNC Mtg. Co. (In re Oakes), 581 B.R. 500 (6th Cir. B.A.P. 2018) – A chapter 7 trustee sought to avoid a recorded mortgage with a defective acknowledgment using his strong arm powers. The bankruptcy court ruled in favor … Continue reading

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