News & Analysis as of September 18, 2024

Mortgages › Junior Lenders

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The term "mortgage" typically refers to a mortgage loan. A mortgage loan is a financing instrument where an individual or business borrows money to purchase property (usually real property) and... more +

So You’re Saying There’s A Chance: Surpluses In Foreclosure

Amundsen Davis LLC on 4/10/2019

Commercial lenders often take junior or second mortgages on real estate as additional collateral for loans. Unfortunately, because those junior liens are subordinate to the senior liens, they are subject to being eliminated...more

Recent Unanimous Supreme Court Decision Holds That Underwater Mortgages in a Chapter 7 Cannot be “Stripped off"

Seyfarth Shaw LLP on 6/23/2015

The Issue and Background - Debtors David Caulkett and Edelmiro Toledo-Cardona (“Debtors”) each filed for Chapter 7 bankruptcy relief with “underwater” junior mortgages held by Bank of America, N.A. (“Bank”). In other...more

Distressed Downloads - June 2015

Orrick, Herrington & Sutcliffe LLP on 6/22/2015

A Battle in the Making in the Oil and Gas Sector: Second Lien vs. High Yield Debt - In the oil and gas industry, there is a storm brewing between holders of second lien debt and unsecured high yield bonds. These...more

Supreme Court Decides Bank of America v. Caulkett and Bank of America v. Toledo-Cardona

Faegre Drinker Biddle & Reath LLP on 6/2/2015

On June 1, 2015, the United States Supreme Court decided Bank of America v. Caulkett, No. 13-1421, together with Bank of America v. Toledo-Cardona, No. 14-163, holding that a debtor in a Chapter 7 bankruptcy proceeding may...more

Real Estate Lien Priority Case - Effect of Subordination Agreement on Junior Liens

Snell & Wilmer on 4/24/2015

In a recent decision, the Utah Supreme Court addressed a matter of first impression in Utah, namely, whether a subordination agreement between two senior lenders, which reversed the priority of their respective liens against...more

Stripping of Unsecured Second Mortgages in Chapter 7 Bankruptcies in the Crosshairs

Carlton Fields on 4/7/2015

Since its 1989 opinion in Folendore v. Small Business Admin., the Eleventh Circuit Court of Appeals has allowed debtors to completely strip off and void wholly unsecured junior liens in Chapter 7 bankruptcies under Section...more

Should Underwater Junior Liens Survive Bankruptcy?

Orrick, Herrington & Sutcliffe LLP on 4/2/2015

On March 24th, the Supreme Court heard oral argument on the consolidated appeals of two decisions from the Eleventh Circuit Court of Appeals, Bank of America v. Caulkett and Bank of America v. Toledo-Cardona. The appeals...more

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