Tag Archives: financing

Pre-Petition Default Interest: Don’t Take Anything For Granted

In Re Shree Mahalaxmi, Inc., 503 B.R. 794 (Bankr. W.D. Tex. 2014) – After a mortgage lender learned of a pre-petition default during a bankruptcy, it filed an amendment to its proof of claim to add pre-petition default interest. The … Continue reading

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Enforcing a Mortgage: A Lost Note May Result In a Lost Cause

Desmond v. Green (In re Harborhouse of Gloucester, LLC), 505 B.R. 365 (Bankr. D. Mass. 2014) – The assignee of a mortgage note that was lost prior to the assignment filed a secured proof of claim in a chapter 7 bankruptcy. … Continue reading

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Collecting A Prepayment Premium: Plain Language May Not Be So Plain

Bank of New York Mellon v. GC Merchandise Mart, L.L.C. (In re Denver Merchandise Mart, Inc.), 740 F.3d 1052 (5th Cir. 2014) – A lender sought to recover a prepayment premium of $1.8 million after acceleration of a note due to … Continue reading

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Recording Defects: A Continuing Theme – Trivial Mistakes May Not Be So Trivial

Gordon v. Wells Fargo Bank, N.A. (In re Knight), 504 B.R. 668 (Bankr. N.D. Ga. 2014) – A chapter 7 trustee sought to avoid a lien on the debtor’s interest in property by exercising his “strong arm” powers as a bona … Continue reading

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Dragnet Clauses: Sometimes They Don’t Work as Hoped, and Sometimes They Do

In re Presser, 504 B.R. 452 (Bankr. S.D. Ohio 2014) – A judgment lien creditor objected to a joint debtors’ chapter 11 plan of reorganization based on a dispute with a mortgagee about whether its mortgages secured guaranty obligations of … Continue reading

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Mortgagee Stay Relief: Wending a Path Through Adequate Protection and Dragnet Clauses

Magnolia Portfolio, LLC v. Dye (In re Dye), 502 B.R. 47 (Bankr. M.D. Pa. 2013) – A mortgagee sought relief from the automatic stay in order to pursue its state law remedies against properties securing seven defaulted loans.  The chapter 11 debtors … Continue reading

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