Tag: coerced foreclosure

Bankr.  W.D.N.C.: In re Rose- Coerced Foreclosure on Real Property

Summary:

Debtors sought authority to quitclaim their previous residence in Florida to the SBA, which held a mortgage against the property but had declined to foreclose.

The bankruptcy court first held that 11 U.S.C. § 1325(a), while property may be “surrendered”, the Bankruptcy Code does not define that term but it has “has been described as the relinquishment of all rights in property, including the right to possess the collateral.” IRS v. White (In re White), 487 F.3d 199, 205 (4th Cir. 2007); 8 Collier on Bankruptcy ¶ 1325.06[4] (Alan N. Resnick & Henry J. Sommer eds., 15th ed. 2005).  This relinquishment of rights by the debtor does not, however have a “corresponding requirement that the lender to do anything with the property” and that a creditor has the right to control its remedies.… Read More

Tagged with: , , , , , ,

N.C. Ct. of App.: Townsend v. Watts- Partition Sale and Affect on Lienholders

Summary:

Siblings, Townsend and Simmons owned real property as tenants in common. Townsend brought suit seeking a partition sale of the property, naming Simmons the lienholder, Citimortgage and the City of Greensboro, as defendants. After the trial court found that due to the size and nature of the property actual partition of the property could not be made without injury to the parties and ordered a partition sale. The property, despite having a tax value of $160,000.00, sold at the partition sale for $2,500.00.

The Court of Appeals upheld the partition sale, finding that the clerk of court had made findings, based on the previous failed sales history, neighboring house values and condition of the property, sufficient to support the $2,500.00 value.… Read More

Tagged with: , , ,
Top