Category Archives: Real Estate

Real Estate

Mortgage Preference: Dilly-Dally Around with Recording and You May Lose

USAA Fed. Sav. Bank v. Hope, 589 B.R. 914 (M.D. Ga. 2018) – A bankruptcy trustee sought to avoid a security deed granted to a refinancing lender as a preference. In defense the lender asserted that there was a substantially contemporaneous … Continue reading

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

Delinquent Property Tax Sales and the Equity of Redemption: When Is Property Really, Really, Really Gone?

Reverend C.T. Walker Housing Dev. Fund Corp. v City of N.Y., 586 B.R. 534 (E.D.N.Y. 2018) – A bankruptcy court denied a debtor’s motion to sell real property and granted a motion for relief from the automatic stay in a related … Continue reading

Posted in Real Estate | Tagged , | Leave a comment

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

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

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

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

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

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

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

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

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

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