No mortgage lien strips in Chapter 7 cases

[despritfreya]

See. . .

http://www.supremecourt.gov/opinions/14pdf/13-1421_p8k0.pdf

BANK OF AMERICA, N. A. v. CAULKETT

Decision entered 6/1/15

I believe a correct result.


Des.

[justbroke]

As a resident and person who has experienced bankruptcy in both Chapter 7 and Chapter 13... and being in the 11th Circuit... I liked the 11th Circuit's end-run around this issue for as long as it lasted.

[brokehmowner]

If the debtors are behind in the 2nd, the DOJ settlement allows for extinguishment. A lot of BK cases seemed to have gotten these extinguishments. I was one of them. We were prepared to let the house go if the 2nd ever came after us. I guess the chances were slim to none since they were totally underwater. They got a couple thousand dollars from DOJ which I guess they figured was more than they would ever get from me.