Residential Mortgages Get Special Treatment With Bankruptcy Provisions

first_img About Author: Mark Baker The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: Strength in Housing Causes Decline in Financial Stress Next: The Industry Pulse: Updates on New Hires and Partnerships in Daily Dose, Featured, News, Print Features The Best Markets For Residential Property Investors 2 days ago 2020-01-22 Mike Albanese Mark Baker is the Managing Attorney in Alabama & Tennessee for McMichael Taylor Gray, LLC (MTG). He has spent over 30 years representing lenders and servicers in default services, including foreclosure, bankruptcy, evictions, and debt collection. Prior to joining MTG, Baker was the Owner of Mark A. Baker Law, LLC, ( Tallahassee, Florida) and the Managing Partner at Johnson & Freedman, LLC (Atlanta, Georgia). Mark received his B.A., University of Alabama and received his J.D. from the Cumberland School of Law. January 22, 2020 2,009 Views Anne Marie Throne is an Associate Attorney at McMichael Taylor Gray, LLC. Her focus is on Tennessee Bankruptcy. Prior to joining MTG, she worked at Podis & Podis as Debtor’s Counsel for Bankruptcy cases. Throne is a graduate of East Tennessee State University, where she received her Bachelor’s Degree in business administration. She received her Juris Doctor degree from Belmont University College of Law. Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Anne Marie Throne Editor’s note: This feature originally appeared in the January issue of DS NewsResidential mortgages receive preferred treatment in Chapter 13 cases—the “anti-modification” provisions of the Bankruptcy Code generally prevent a debtor from modifying claims secured only by the debtor’s residence, even when the property is “underwater.” But what if the residential mortgage obligation matures prior to or during the pendency of the case and the value of the property is less than the debt? The Fourth Circuit Court of Appeals (Maryland, Virginia, West Virginia, North Carolina, and South Carolina) has recently aligned itself with the Eleventh (Alabama, Georgia, and Florida) and Sixth (Kentucky, Michigan, Ohio, and Tennessee) Circuits to clearly establish that these unfortunate lienholders have drawn the short end of the stick. Indeed, all circuit courts that have considered the issue are in agreement.The anti-modification prohibition of Chapter 13 in Section 1322(b)(2) of the Code provides that “subject to subsections (a) and (c) of this section, the plan may modify the rights of holders of secured claims, other than a claim secured only by a security interest in real property that is the debtor’s principal residence. This Code section seems to be a straightforward prohibition against residential mortgage modification. Thus, for “long-term” mortgage debt—a secured obligation which by its terms extends beyond the duration of the case—the debtor may not modify the loan and must continue making ongoing mortgage payment and cure any pre-petition arrearage owed on the loan during the pendency of the case. In addition, undersecured long-term junior liens secured only the debtor’s principal residence must be cured and paid through the bankruptcy, provided there is any equity above the first lien.However, there is an anti-modification exception found in Section 1322(c)(2): “notwithstanding subsection (b)(2) in a case in which the last payment on the original payment schedule for a claim secured only by a security interest in real property that is the debtor’s principal residence is due before the date on which the final payment under the plan is due, the plan may provide for the payment of the claim as modified pursuant to section 1325(a) (5) of this title.” Section 1325(a)(5) then provides that “the court shall confirm a plan if (5) with respect to each allowed secured claim provided for by the plan (ii) the value, as of the effective date of the plan, of property to be distributed under the plan on account of such claim is not less than the allowed amount of such claim.”Courts have struggled with the apparent inconsistency between these two interrelated Code sections. Can the debtor only modify the payment terms, as suggested by Section 1322(c)(2)? Or can the debt be crammed down to value, as provided in Section 1325(a)(5)? The Fourth Circuit Court of Appeals has joined the Sixth and Eleventh Circuits to hold that a lien secured only by the debtor’s principal residence that matures before the final payment under the plan, no matter the lien position, may be crammed down and bifurcated into secured and unsecured claims.nd unsecured claims. In Hulbert v. Black, decided May 24, 2019, the Fourth Circuit Court of Appeals considered whether only the monthly payment amount could be modified, or whether the debt could be crammed down. When the debtor filed Chapter 13 in April 2016, the residential mortgage loan had already matured with a total balance due of about $181,000; however, the debtor valued the property at only $40,000. The plan proposed to bifurcate the lien into secured and unsecured portions. The Fourth Circuit held that Section 1322(c)(2) is best read to authorize modification of claims, not just payments, and concluded that a chapter 13 plan may bifurcate a short-term claim based on an undersecured homestead mortgage into secured and unsecured components and cram down the undersecured component to the value of the property. Hulbert v. Black, 925 F.3d 154 (4th Cir. 2019).The Eleventh Circuit has also concluded that the plain language of Section 1322(c) (2) permits the modification of claims (through bifurcation and cramdown) secured by those short-term home mortgages that mature prior to the completion of a Chapter 13 plan. Am. Gen. Fin., Inc. v. Paschen (In re Paschen), 296 F.3d 1203 (11th Cir. 2002). Similarly, the Sixth Circuit has held that Section 1322(c)(2) creates a narrow exception to the protection from modification in §1322(b)(2) that includes the power to bifurcate undersecured claims that matured or will mature, consistent with Section 1325(a)(5). First Union Mortg. Corp. v. Eubanks (In re Eubanks), 219 B.R. 468 (6th Cir. BAP 1998).Thus, in the Fourth Circuit, as in the Sixth and Eleventh, a short-term undersecured lien secured only by the debtor’s principal residence may be bifurcated into secured and unsecured claims. Effective property valuation, perhaps by expert testimony, then becomes the key to maximizing the creditor’s recovery. Related Articles Demand Propels Home Prices Upward 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Residential Mortgages Get Special Treatment With Bankruptcy Provisions Home / Daily Dose / Residential Mortgages Get Special Treatment With Bankruptcy Provisions  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

Fighting prejudice by admitting it

first_img“Every single person in this room is prejudiced,” said Gail Price-Wise to the more than 100 people assembled in the Student Organization Center at Hilles.  With that provocative opening salvo, Price-Wise spent the next 2½ hours explaining why everyone makes prejudicial judgments, and what to do about it.“Prejudice is an uncomfortable word because it is so painful,” said Price-Wise, founder and president of the Florida Center for Cultural Competence.  Her presentation, “Managing Your Biases as a Step Toward Cultural Competence,” was the first of three Faculty of Arts and Sciences (FAS) diversity dialogues planned for the academic year.“This presentation was one of the most interactive that we have had.  The audience was clearly engaged in the discussion,” said Andrea Kelton-Harris, senior human resources consultant in FAS.Price-Wise said no one wants to admit that he or she has prejudice, and no one wants to be the target of it, but “we all have prejudice.”“If you don’t, you’re not human,” she said.  Everyone has a negative, gut reaction to certain people or different groups who are different and that those doing the judging know nothing about.  “We pre-judge people and have an automatic feeling about them just by how they look.”  She confessed that she has a negative reaction to people with brightly colored hair and those with lots of tattoos.In adults, Price-Wise said there is no such thing as a first impression.  “When you react or have a gut feeling about someone, it’s based on something you’ve seen or experienced in the past,” she said. Prejudice requires that you think all “those” people are the same.  The good news, she said, is the more exposure you have to a group, the more you get to know individuals, the weaker the prejudice becomes.More good news, according to Price-Wise, is that people can manage their prejudice.  “’Fess up,” she said.  Admit to the prejudice, and try to figure out where it came from.  People are not born prejudiced.  They pick up prejudice from various sources during their life: books, movies, television, family members, friends, etc.  “Examine the statement ‘Those people are all the same,’ and remind yourself that it’s not true,” she suggested.Further, she said, “Learn about the individuals you meet.”  She added, “Everything you think or say about a cultural group is true of some people in that cultural group and not true of other people in that group.  Individuals differ based on how they were raised, their personal life experiences, their education, socio-economic status, whether they have traveled, and the personality they were born with.”Price-Wise cautioned the audience about micro-aggressions, “a subtle and often unintentional offense, such as comments like ‘You’re very smart for someone of your race,’ or ‘Some of my best friends are …,’ or ‘As a woman, I face discrimination too.’ ” What should you do if confronted with micro-aggressions?  Assess the intent, she said.  “Did the person intend to be insulting or hurtful?”  Next, “Determine if it’s worth confronting.  Is the person reasonable?  Is this a relationship you care about?  Will you feel better?”If the remark warrants a response, Price-Wise suggests making sure you are calm before confronting the person.  For example, regarding the comment, “You’re very smart for someone of your race,” she said, “Don’t accuse the person of prejudice or racism, but inform them that the comment or action was hurtful and why.”  She suggested saying something like, “That comment makes me feel bad because it implies that people of my race are generally not intelligent.”  Finally, she suggests adding missing information, such as, “Actually, most people of my race are quite intelligent and hard-working, just like people of your race. The news only reports on people in trouble and distorts the truth about most of us.”Finally, how do you address your own micro-aggressions?  Price-Wise advised, “If you know you said something dumb, apologize and try to learn something about the people for whom you have a prejudice.”last_img read more

Two thoughts on resolutions

first_imgOne final thing. Take the two ideas above, and apply them to your credit union. What should you do more or less of as an organization?  And what is your credit union great at doing? Could you do more of it in 2015? It is that time of year. Gyms are crowded. Folks order salads more often. Lists are made. Battle plans are drawn. Tis the season for resolutions.I don’t mind resolutions one bit. I think self-reflection is a good thing. I think striving to improve is a huge force behind success.I’d like to bring up two thoughts, though, if I may. Consider using more/less. I know that good goals are binary. Did you hit the mark or not? While the following idea may seem soft to some, I think it still fits the bill. Rather than hitting the gym every day in January, or losing 27.5 pounds, why not try to add or subtract things. Exercise more. Watch less TV. Write more thank you notes. Spend less on take-out sushi. It is hard to stop cold turkey or start from scratch. But gentle tweaks can make huge long-lasting gains.Don’t forget your strengths. Too often, resolutions are about things we don’t like about ourselves. Turn it around this year. Take something you do well, and amplify your efforts. Do you write well? Plan on getting published in your local paper three times this year. Have musical talents? Make a goal to play your guitar at a local nursing home.center_img Here’s to a great 2015, everyone. 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Anthony Demangone Anthony Demangone is executive vice president and chief operating officer at the National Association of Federal Credit Unions (NAFCU). Demangone oversees day-to-day operations and manages the association’s education, membership, … Web: https://www.cuinsight.com/partner/nafcu Detailslast_img read more

​Hafsteinsdóttir urges Icelandic pension funds on infrastructure

first_imgHafsteinsdóttir said: “I am of the opinion that the interests of all parties involved are well balanced, and the pension funds should therefore consider these possibilities very seriously.”She also said that in line with the drive in Iceland towards a resource-driven economy rather than resource management alone, pension funds were being encouraged to invest more in innovation.“In many respects, the environment in this country is very good in the early stages of innovation, but when companies need to grow even more, the issues are often problematic and they have few sources of financing to turn to in Iceland,” said Hafsteinsdóttir, who is also vice chair of the board of Iceland’s second biggest pension fund, the Pension Fund of Commerce (LV).As a result, she added, many promising companies have moved out of Iceland and set themselves up in neighbouring countries instead of prospering at home and creating value.“Investing in innovation is riskier than in greener companies, but the benefits can also be greater if successful,” Hafsteinsdóttir said.To read the digital edition of IPE’s latest magazine click here. The chair of Iceland’s pensions lobby is encouraging its members to bolster the country’s economy by putting more investment into local infrastructure, and also backing the island’s innovation business sector.On Tuesday, Guðrún Hafsteinsdóttir expressed her opinion at the Icelandic Pension Fund Association’s (Landssamtök lífeyrissjóða, LL) annual general meeting that pension funds should seriously consider how they invest in local infrastucture projects.In that context, she cited six infrastructure projects which Minister of Transport and Local Government Sigurður Ingi Jóhannsson has said could go ahead with a relatively short preparation period.Jóhannsson, a former prime minister, had talked about them as cooperative projects and mentioned the possible involvement of pension funds, she said.last_img read more

Construction on new Gainsborough Greens recreation hub has kicked off

first_img“The new recreation centre will further add to the array of amenities available in this precinct of Gainsborough Greens, giving residents resort-style facilities to entertain, socialise and stay fit within a short walk of their home.” The new facilities will complement an existing recreation centre in the precinct. More from news02:37International architect Desmond Brooks selling luxury beach villa11 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoA 25m lap pool, basketball court, gym and barbecue area will be among its facilities. MORE NEWS: Acreage estate raises the bar Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:50Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:50 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenDifferences between building in new or established estates01:50 Construction has started on a $2 million recreation centre and pool at Mirvac’s Gainsborough Greens community in Pimpama.GAINSBOROUGH Greens residents will soon have access to a 25m lap pool, basketball court, gym and barbecue area.The facilities are part of a $2 million recreation centre and pool being built for Mirvac’s Pimpama community. Construction has started on the architecturally-designed centre, which will be next to the latest premium golf-side land release. Mirvac Queensland residential general manager Warwick Bible said the lifestyle available to residents in the exclusive Forest Green release had been a major drawcard. “Buyers are seeing the unique opportunity offered by our golf-side land, with access to these exclusive resident facilities and an idyllic outlook to match,” he said. MORE NEWS: Million-dollar home profit to go to charitylast_img read more

Indiana Pacers appoint Robert “Cody” Parrent as Director of Esports Operations

first_imgEsports Insider says: More and more appointments are now emerging as esports initiatives gather pace out in the States. We’re looking forward to the league getting underway next year. The NBA team Indiana Pacers announced last week that Robert “Cody” Parrent is to join the organisation as their Director of Esports Operations.Robert will report directly to Kelly Krauskopf, the Senior Vice President of the Pacers. The Pacers have yet to make a huge move in esports, yet are one of the 17 confirmed NBA teams who are set to participate in the NBA 2K League’s inaugural season which gets underway next year. Whilst Parrent is not an overly familiar name in the esports industry, he brings a wealth of business experience and work in and around the esports space. In the business world, he spent time at Berry Plastics Corp., as an IMS Business Analyst and recently was a Co-Owner of Blue Commerce LLC, a company engaged in market research and Ecommerce. The release also adds that Parrent was an active member of the Evansville community, where he attended university. He was an Associate Head Coach with the Evansville Soccer Club and volunteered with a variety of organisations and charities. “Cody brings solid competitive gaming experience in many esports titles such as Halo, CS:GO, FIFA, and NBA 2K,” said Krauskopf. “He has built numerous connections in the NBA 2K community through his background in developing the 2KLab which focuses on analysing data from the 2K video game franchise in order to give players an edge over the competition. We are fortunate to have him leading our operation.”“I am honored to become a member of the Pacers team and look forward to developing a first-class esports operation here in Indianapolis,” said Parrent, who earned both a Bachelor of Science degree in Marketing and a Masters of Business Administration from the University of Southern Indiana in Evansville. “I have been involved in the esports community since 2006 and am passionate about being a part of the movement of competitive gaming into the mainstream.”last_img read more

Teen gymnast Carlos Yulo makes PH history with bronze in world championships

first_imgGretchen Barretto’s daughter Dominique graduates magna cum laude from California college Yulo tallied 14.600 points to wind up on the podium in the men’s floor final.Artur Dalaloyan of Russia took home the gold medal with 14.900 points while Kenzo Shirai of Japan was a close second with 14.866 points.FEATURED STORIESSPORTSGinebra beats Meralco again to capture PBA Governors’ Cup titleSPORTSJapeth Aguilar wins 1st PBA Finals MVP award for GinebraSPORTSGolden State Warriors sign Lee to multiyear contract, bring back Chriss Tim Cone, Ginebra set their sights on elusive All-Filipino crown Eyeing an encore MOST READ Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew Carpio hits red carpet treatment for China Coast Guard PLAY LIST 02:14Carpio hits red carpet treatment for China Coast Guard02:56NCRPO pledges to donate P3.5 million to victims of Taal eruption00:56Heavy rain brings some relief in Australia02:37Calm moments allow Taal folks some respite03:23Negosyo sa Tagaytay City, bagsak sa pag-aalboroto ng Bulkang Taal01:13Christian Standhardinger wins PBA Best Player award Carlos Edriel Yulo of The Philippines competes on the floor exercise during day nine of the 2018 FIG Artistic Gymnastics Championships at the Aspire Dome on November 2, 2018 in Doha, Qatar. (Photo by KARIM JAAFAR / AFP)Carlos Yulo won a historic bronze medal for the Philippines in the 2018 FIG Artistic World Championships Friday at Aspire Academy Dome in Doha, Qatar.The 18-year-old Yulo, the youngest among all participants, bagged the country’s first medal in the world championship.ADVERTISEMENT Artur Dalaloyan is the 2018 Men’s Floor World Champ🥇🥇 Dalaloyan RUS – 14.900🥈Shirai JPN – 14.866🥉Yulo PHI – 14.600 – 1st ever medal!Results 👉 https://t.co/N66JL7iOy6Women’s Vault next @DohaGym2018🎥👉 https://t.co/N66JL7iOy6#DohaGym2018 #GoGymtastic— FIG (@gymnastics) November 2, 2018 Nadine Lustre’s phone stolen in Brazil Allen Durham still determined to help Meralco win 1st PBA title Will you be the first P16 Billion Powerball jackpot winner from the Philippines? Gov’t to employ 6,000 displaced by Taal Sports Related Videospowered by AdSparcRead Next Don’t miss out on the latest news and information. LATEST STORIES Japeth Aguilar embraces role, gets rewarded with Finals MVP plum View commentslast_img read more

ICC Champions Trophy: We’re moving forward with our positive intent, says Ben Stokes

first_imgEngland beat Australia at Edgbaston to knock out the two finalists of the 2015 ICC World Cup, Australia and New Zealand.England’s rain-affected 40-run win over their fiercest cricketing rivals was spearheaded by the fine partnership of Ben Stokes and Eoin Morgan.Rain had held up play for over 40 minutes and the Australian bowlers had reduced the English batting line up to 35 for 3. Common sense would say caution and a steady head to see out the moving ball from a fierce bowling attack. But Ben Stokes is not such a man.The burly all-rounder let loose from the word go, blasting a career-best 102 not out, while stringing a 159-run partnership with captain Morgan.  As England came out victorious by 40 runs (via D/L method) when the rain disrupted play again, Stokes was unbeaten on 102 (his third ODI century) while Morgan fell just 13 short.”There was always pressure. But the fear thing – we don’t think about too much,” Stokes told ICC after the game in an interview.”Me and Morgy (Morgan) both talked about the fact that the ball wasn’t swinging and there was just a bit of sideways movement off the deck. So we just had to try and play every ball on its merit and then once you get in on good wickets and face a few balls, it gets a lot easier.”It just sums up our team at the moment and the way we’re moving forward with our positive intent and we always on to be on the front foot.”advertisementWhen asked if the plan was to attack after the initial rain-break, Stokes corrected that it was the way England play the game at the moment.”I don’t think it was a counter-attack,” he said. “It’s just our natural way in the middle order. We always look to take the positive option whether in attack or defence.””It was just our natural way,” said Stokes. “We don’t make a conscious effort on that (targeting bowlers) unless we feel the need to. We just keep playing, we know that our natural attacking positive instinct is probably going to take over.”Stokes innings was laden with 13 fours and two sixes, but the start-stop nature of the game meant that he had to cautious in his approach and keep evaluating the target every other over.”When you’re out there in chases, the biggest thing that you need to come over is the adrenaline that you feel,” he explained. “I actually had to sort of start again at certain stages. I looked up at the board and saw we needed 100 to win and I thought I was getting a bit too far ahead of myself. I thought if I got out playing a silly shot, it’ll put some pressure on the guys coming after me. I just try and concentrate on the run rate on what we need, try and take over from there and make sure we get that and put bad balls away.”Stokes says England are not getting ahead of themselves just yet, being the only team to qualify unbeaten in this year’s competition , but they are definitely living up to the tag of  ‘favourites’.”We know we’re going well as a team and we’ve got potential. But we have two big games ahead of us.”last_img read more