[CLBS] Underwater

[Noah Hillen]

Judge Pappas recently addressed this issue in the Wages case, in which he held that the antimodification provision set forth in 1123(b)(5) prevented modification of a loan that was secured by real property used as both the debtor's principal residence and business.  I have included a link to the Wages opinion below.

http://www.id.uscourts.gov/decisions-bk/Wages.7.jrn.pdf

-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Patricia Evans
Sent: Wednesday, February 20, 2013 8:40 PM
To: Bankruptcy list
Subject: [CLBS] Underwater


Have a guy that has a lien against his residence/business (same location).  Bank loaned 70,000.00 originally.  The bank just kept loaning on the building appraised at $118,000.00.  There is now $285,000.00 owed against the note that is worth $118,000.00.  Bank said they would accept $80,000.00 lump sum which the debtor can not do. I have never stripped a lien.  Is this possible in this situation.  Thanks, Trish

Patricia Evans
Attorney at Law
POB 1016
155 Main Street Suite #2
Orofino Idaho 83544
(208) 791-6794

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