Tag Archives: strong arm powers

Scrivener’s Error: Can a Residential Deed of Trust Be Avoided Because It States That It Secures a Maximum Principal Amount of $21.1 Trillion?

Rouse v. U.S. Bank, N.A. (In re Lolley), 607 B.R. 673 (Bankr. W.D. Mo. 2019) – A chapter 7 trustee sought to avoid a deed of trust lien on the grounds that it did not comply with statutory requirements. Specifically, the … Continue reading

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UCC Collateral Description: Can You Look Beyond the Four Corners of the Financing Statement?

First Midwest Bank v. Reinbold (In re I80 Equipment, LLC), 938 F.3d 866 (7th Cir. 2019) – In connection with a lawsuit to recover a loan secured by substantially all of a debtor’s assets, a lender sought a declaration that its … Continue reading

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Lis Pendens: Is It A “Transfer” (And Thus Avoidable) Or Not?

Viera v. Whitfield (In re Shiver), 598 B.R. 221 (Bankr. D. S.C. 2019) – A chapter 7 trustee sought to avoid a judgment, a lis pendens and a foreclosure decree involving the debtor’s property as preferences and/or by exercising the strong … Continue reading

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Avoiding Mortgages: The Saga of Exercising Strong Arm Powers Continues

Harker v. PNC Mortgage Co. (In re Oakes), 917 F.3d 523 (6th Cir. 2019) – A chapter 7 trustee brought an adversary proceeding to avoid a defectively acknowledged mortgage by exercising a trustee’s strong-arm powers as a bona fide purchaser of … Continue reading

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Avoiding Mortgages: Not All Typos Are Fatal

Fuhrman v. Wilmington Sav. Fund Society FSB (In re Fuhrman), 596 B.R. 343 (Bankr. E.D. Mich. 2018) – A chapter 13 debtor sought disallowance of a mortgage claim based on an error in the mortgage legal description. The lender moved to … Continue reading

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Avoiding Mortgages: What Happens When A Stranger to The Transaction Files a Discharge in Error?

Kelley v. Ocwen Loan Servicing, LLC (In re Bowers), 595 B.R. 869 (Bankr. M.D. Ga. 2018) – A chapter 7 trustee sought to avoid a security deed based on the fact that as of the petition date satisfactions of the security … Continue reading

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Selling Real Estate Free and Clear: The Trustee Does Not Always Win

Belfance v. Shelton (In re Shelton), 593 B.R. 755 (Bankr. N.D. Ohio 2018) – A chapter 7 trustee sought a determination of rights in connection with seeking authority to sell property free and clear of other interests using its power of … Continue reading

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