top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

(Chapter 7) Lien Stripping Survives in FLORIDA! (SCOTUS Denies Certiorari)

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    (Chapter 7) Lien Stripping Survives in FLORIDA! (SCOTUS Denies Certiorari)

    I can't believe I missed one of the best non-rulings in my lifetime! If you are unfamiliar, Bank of America lost a ruling in the 11th Circuit (Florida, Georgia, Alabama) where the Courts are now allowing lien stripping in Chapter 7s! The 11th Circuit ruled that the famous Dewsnup case was not the "controlling" decision because Dewsnup never directly addressed stripping in Chapter 7s. (Dewsnup addressed strip-downs in Chapter 13s!!!)

    So, in Bank of America v. Sinkfield, 13-700, 2014 WL 1271326 (U.S. Mar. 31, 2014), the Supreme Court was asked to fix this issue since the 11th Circuit appears to be the only one to allow stripping in Chapter 7s. We in Florida have been having a great time with this and I'm sure creditor attorneys are not.

    In fact, we have been easily stripping HOA liens in Chapter 7s here. The HOA attorneys have gone mad and even tried to claim that somehow HOA liens were different than other liens. They've tried everything and lost every single time. This refusal for certiorari is perfect as it now preserves our Chapter 7 lien stripping for some time!
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
    Tags: None
    #2
    So, what does this mean exactly? I am in my 60 day wait…..had 341 a few weeks ago for Chp 7. I have a second lien that was not stripped because I have a little equity in my first. Should I call my lawyer about this??

    Comment

      #3
      soscared123, are you in Florida? If not, this doesn't apply to you. Also, assuming a Chap 7 strip is like a Chap 13 strip, the value of your home must be less than the balance on your first mortgage in order or strip the 2nd lien.
      LadyInTheRed is in the black!
      Filed Chap 13 April 2010. Discharged May 2015.
      $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

      Comment

        #4
        Exactly as LITR writes. I will only add that tihs Chapter 7 Lien Stripping should be good in Georgia and Alabama as those states are part of the 11th Circuit where the original case was upheld (Folendore v US Small Business Administration).
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment

          #5
          Although our 2nd is already stripped, it's awesome to see that this option is still available to others!

          Considering the huge impact this opportunity can have on those filing for CH7 in the 11th Circuit, I'm still baffled as to why the media hasn't picked up on this topic at all. I'm sure there are thousands out there in the 11th Circuit that would file ASAP if they knew they could get rid of their second mortgage.
          Filed CH7 9/24/2010, 341 on 10/28/2010, Disch.&Closed: 1/6/2011. FICO EX: 9/2: 672.
          FICO EQ: pre-filing: 573, After BK Public Record: 568, 10/3: 673.
          FICO TU: pre-filing: 589, After BK Public Record: 563, 9/2: 706.

          Comment

            #6
            Originally posted by IBroke View Post
            Although our 2nd is already stripped, it's awesome to see that this option is still available to others!

            Considering the huge impact this opportunity can have on those filing for CH7 in the 11th Circuit, I'm still baffled as to why the media hasn't picked up on this topic at all. I'm sure there are thousands out there in the 11th Circuit that would file ASAP if they knew they could get rid of their second mortgage.
            Maybe values are starting to go up so there won't be as many lien strips?

            Comment

              #7
              Originally posted by brokehmowner View Post
              Maybe values are starting to go up so there won't be as many lien strips?
              Not quite. There are lien strips happening all over the Florida Bankruptcy Courts. Especially where people purchased in the 2006-2008 run-up. Additionally, stripping HOA liens seems to be "good sport" right now in the bankruptcy courts (of Florida)!
              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
              Status: (Auto) Discharged and Closed! 5/10
              Visit My BKForum Blog: justbroke's Blog

              Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

              Comment

                #8
                I bought my house in 2005, before the value went up another 20%. Without my lien strip, I am probably about 35% underwater. And I believe California is among the earlier and quicker states to recover. I am sure there are plenty more people like me who did 20/80 financing who will be undewater for quite some time and plenty of people who can strip their mortgages for years.
                LadyInTheRed is in the black!
                Filed Chap 13 April 2010. Discharged May 2015.
                $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                Comment

                  #9
                  LITR you make a good point! It's primarily the 80/20 loans that remain eligible. Anyone with just a purchase money first mortgage will not benefit unless they obtained some line of credit above the purchase value after the purchase. (In most cases, the second mortgage in the 80/20 loans is actually a home equity line of credit with one draw at the time of financing.)
                  Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                  Status: (Auto) Discharged and Closed! 5/10
                  Visit My BKForum Blog: justbroke's Blog

                  Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                  Comment

                    #10
                    Yep, my 2nd is a HELOC. In a year from now, I'll be able to say it WAS a HELOC.

                    Another group of people who will still be eligible for a strip are people who borrowed against their homes' increased values, also usually through HELOCs.
                    LadyInTheRed is in the black!
                    Filed Chap 13 April 2010. Discharged May 2015.
                    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                    Comment

                      #11
                      Long live, and die, the HELOC! (Just some lien stripping humor!)
                      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                      Status: (Auto) Discharged and Closed! 5/10
                      Visit My BKForum Blog: justbroke's Blog

                      Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                      Comment

                        #12
                        Originally posted by justbroke View Post
                        Long live, and die, the HELOC! (Just some lien stripping humor!)
                        Haha...absolutely!

                        Well, we were also part of this "irresponsible" homeowners you did several refis as soon as the value of our home increased. The bad thing is that as a result, our first mortgage loan-amount is quite high. On the other hand, without this huge debt, we probably would have lost our home because the lender wouldn't have lost that much money in a foreclosure.

                        Sometimes, the irresponsible way pays off...
                        Filed CH7 9/24/2010, 341 on 10/28/2010, Disch.&Closed: 1/6/2011. FICO EX: 9/2: 672.
                        FICO EQ: pre-filing: 573, After BK Public Record: 568, 10/3: 673.
                        FICO TU: pre-filing: 589, After BK Public Record: 563, 9/2: 706.

                        Comment

                          #13
                          Yes, I am in south florida. But it won't apply to me. My home would sell for about 160,000.
                          My first mortgage I owe 106,000.
                          My HELOC is 65,000.
                          Took out the HELOC when the values went up….falsely!
                          Darn it!

                          Comment

                            #14
                            Originally posted by justbroke View Post
                            Long live, and die, the HELOC! (Just some lien stripping humor!)
                            I am on the ferry ride home and lifting my friday cocktail to that.
                            LadyInTheRed is in the black!
                            Filed Chap 13 April 2010. Discharged May 2015.
                            $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                            Comment

                            Previous template Next

                            bottom Ad Widget

                            Collapse
                            Working...
                            X