Tag Archives: financing

Default Interest: Is a Mortgagee Entitled to Collect the Contract Rate, or Must It Be Reasonable?

Posted on March 11, 2014 by BankruptcyRealEstateInsights

In re Haldes, 503 B.R. 441 (Bankr. N.D. Ill. 2013) – An oversecured mortgagee’s proof of claim included default interest for the period from the date of the bankruptcy filing through confirmation of a plan of reorganization.  The debtor argued that … Continue reading →

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Chapter 11 Claim: Nonrecourse + No Equity = Disallowed Claim… Or Maybe Not

Posted on February 14, 2014 by BankruptcyRealEstateInsights

In re B.R. Brookfield Commons No. 1 LLC, 735 F.3d 596 (7th Cir. 2013) – A chapter 11 debtor sought to disallow the claim of a second mortgagee that held a nonrecourse loan that was totally underwater (i.e., the property was worth … Continue reading →

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Mortgage “Strip Off” in Chapter 7: Dewsnup Fails to Prevail – Go Figure

Posted on February 11, 2014 by BankruptcyRealEstateInsights

McNeal v. GMAC Mortgage, LLC (In re McNeal), 735 F.3d 1263 (11th Cir. 2012) – A chapter 7 debtor sought to “strip off” the second mortgage lien on her home.  The bankruptcy and district courts declined, and the debtor appealed to … Continue reading →

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Untimely Secured Proof of Claim: The Ghost of Dewsnup May Save the Day

Posted on February 7, 2014 by BankruptcyRealEstateInsights

Shelton v. Citimortgage, Inc. (In re Shelton), 735 F.3d 747 (8th Cir. 2013) – A secured creditor holding a mortgage on the residence of two chapter 13 debtors filed a proof of claim almost seven months after the claims bar date.  The … Continue reading →

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Claim Priority: Construction Lien Meets Mortgage – Who Wins?

Posted on January 14, 2014 by BankruptcyRealEstateInsights

ROK Builders, LLC v. 2010-1 SFG Venture LLC (In re Moultonborough Hotel Group, LLC), 726 F.3d 1 (1st Cir. 2013) – After the owner of a newly constructed hotel filed bankruptcy, the assignee of the construction mortgage sought a declaration that … Continue reading →

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The Ivanhoe Rule: Double Recovery Is Not Permitted, But … (a/k/a Limitation-on-Dividend Approach Meets Reduction-of-Claim Approach)

Posted on January 7, 2014 by BankruptcyRealEstateInsights

In re Del Biaggio, 496 B.R. 600 (Bankr. N.D. Cal. 2012) – The creditors committee objected to proofs of claim filed by a group of unsecured lenders who had received partial payment from a non-debtor co-obligor, arguing that the claims should … Continue reading →

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