Bankr. E.D.N.C.: In re 4.98 Westgate Partners- Incorrect Mortgage Statement

Summary: The Debtor granted Woodlands Bank a $1.44 million mortgage. Woodlands Bank was purchased by the FDIC and sold to Bank of the Ozarks, subject to a guarantee that the FDIC would compensate the Bank of the Ozarks for up to 80% of any losses on loans. Subsequently, the Debtor filed Chapter 11. The Bank of the Ozarks filed a Proof of Claim in the amount of $1,488,324.07, but then sent the Debtor two letters stating that the mortgage balance was $1.16 million. Following testimony from an executive vice president for the Bank of the Ozarks, the bankruptcy court found that the letters stating a $1.16 million balance were sent in error. For a copy of the opinion, please see: 4.98 Westgate Partners- Incorrect Mortgage Statement.pdf