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. 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University holds luncheon to honor King’s legacy

first_imgKat Robinson Sophomore and president of the Muslim Student Association, Hosnia Somadi, read two verses from Quranic surahs in Arabic at a luncheon honoring the legacy of Martin Luther King Jr., which took place in the Joyce Athletic and Convocation Center on Monday.Ann Firth, chief of staff to University President Fr. John Jenkins, welcomed attendees to the luncheon with a description of the goal Walk the Walk Week hopes to attain.“As you know, this luncheon and the numerous campus events planned during Walk the Walk Week … are all designed to be occasions when we come together to reflect more deeply on who we are as a community,” Firth said. “These are also critically important opportunities to participate in the national and global conversations about diversity and inclusion. Conversations that are as important now as ever.”After reading a quote from King emphasizing love, community and reconciliation, Firth said Notre Dame aims to achieve King’s vision of an inclusive community.“Dr. King is describing the kind of community we seek to be at Notre Dame: one that recognizes the dignity of every member, welcomes each person fully, treasures their gifts as a reflection of God, supports them and shares their struggles,” Firth said. “As an academic community, we strive to explore, discuss and celebrate differences, as well as commonalities, thus enriching our grasp of truth and understanding.”Sophomore and president of the Muslim Student Association, Hosnia Somadi, offered the invocation. She read two verses from Quranic surahs in Arabic before explaining their significance. She said both verses related to justice, particularly the idea that all of humans, regardless of belief, can be united through God. Somadi said she encourages the audience to find peace.“I am very honored to be here today. I would like to end off asking of you all to keep in mind Islam, among all faiths, is one that encompasses peace and love,” Somadi said. “And I ask of you all today to keep this peace and love in all of your hearts, for we are all the children of God.”After a pause in programming for lunch, the ceremony continued with a video in which various members of the community, including students, faculty, administrators and staff, were asked, “What are you doing to advance Dr. King’s legacy on campus?”In the video, director of campus ministry Fr. Pete McCormick said King’s work certainly possessed a spiritual dimension.“He was a man who clearly had reflected on the scriptures, a man who deeply cared about what those scriptures led him to,” McCormick said. “As a priest certainly, as someone who is tasked with preaching on this campus, thinking about ‘How can I bring those very same words to life?’ But more practical for us all, ‘How is it that we can be invited into those same words, into those same texts that are so sacred, that led Dr. King to imagine a world that could be?’”During another segment of the video, director of admissions Bob Mundy discussed King’s legacy as it related to universities and higher education. Because he was the first in his family to attend college, Mundy said higher education is a great avenue for “social change and social opportunity” that King helped expand access to education.“Dr. King reminds us that that access is not always equally available” Mundy said. “An exciting part of my work at Notre Dame is I get to help students find that opportunity … and have them come here and enjoy the benefits of a terrific education.”The final segment of the luncheon then began as Fr. Jenkins took the stage to introduce Corey and David Robinson, the two keynote speakers. However, before he did so he took a few moments to offer his own remarks on King. Referring to quote from King in which the civil rights leader warned against the dangers of “social stagnation,” Jenkins said the purpose of the luncheon involves unity.“It is in the spirit of resisting social stagnation that we suspend classes today and come together to reflect on the King legacy and on the ways we continue to make progress in our community and in our world,” Jenkins said.The conversation between the Robinsons then commenced, and David Robinson said his father, who grew up in Little Rock, Arkansas in the 1950s, had the opportunity to be a member of the “Little Rock Nine,” who integrated the city’s schools, but declined the offer. Corey Robinson said David’s father, his grandfather, also had the opportunity to play basketball at the University of Arkansas but ultimately decided against it because of the school’s segregated facilities. David Robinson said his mother grew up in segregated Columbia, South Carolina, and had to be bused every day to an African American school on the other side of town.David Robinson, a graduate of the Naval Academy and community icon in San Antonio — where he played for the San Antonio Spurs — said he views grace and mercy as the most important parts of King’s legacy.“Martin Luther King is really an icon. For me, he is the perfect picture of a man who, motivated by his faith, stepped out into the world and moved and made a difference,” David Robinson said. “And he practiced grace and mercy. And that’s my challenge to my boys, to myself every day. Practice grace and mercy. Those are two things I think we’re having trouble with now in this country.”Asked by his son to offer a more specific definition of both “grace” and “mercy,” David Robinson said it was important to break expected behaviors in the two concepts.“To me, grace … is giving kindness to people even though they don’t deserve it,” David Robinson said. “And then mercy is not punishing someone for something that they actually do deserve. That’s obviously another concept that’s a challenge … Those two things I think are really key.”David Robinson said the difficulties his parents faced during their upbringings paved the way for grace and mercy to become critical parts of his life growing up. After David Robinson related the story of his own grandfather — who worked in a post office for decades but was never promoted because of the color of his skin and who ultimately sued over the issue — Corey Robinson reflected on the progress that has been made over the ensuing generations.“Within a couple generations, I went to Notre Dame and got this opportunity,” Corey Robinson said. “It’s just an unbelievable turnaround over three generations … and I think it has to do in part with my parents, my grandparents, my great-grandparents in choosing mercy and grace over hate and choosing to see the opportunity and building that environment.”David Robinson said he founded a private school in San Antonio, Texas, Carver Academy, with the goal of helping underprivileged students get into and enroll in college. Currently, after partnering with IDEA Public Schools, David has helped open 61 charter schools across Texas. He said he recently attended an event where graduates of these schools announced where they were going to college. He said watching the students, half of whom are first generation college students, was an “amazing deal.”As the talk drew to a close, David Robinson evaluated the progress American society as a whole has made on these issues.“America is an ideal — we’re not even close to what we say we are, ‘the home of the free’ and ‘the land of the brave,’” David Robinson said. “We’re not even close. But we’re getting there. We’re changing. We’re practicing. We’re getting better. We’re treating each other a little bit better. Over the years, we’ve grown up as a country. And we continue to grow up and we have a system that allows change. That allows us to grow into being America, being the bastion of the world. And we have the potential to be, but we’re not who we say we are. We have to continue to grow. So, for me it’s all about just day by day just … practicing grace.”David Robinson closed he believes this generation has the potential to change the world.“The world is changing so fast,” David Robinson said. “You guys have an incredible access to information and opportunity. I think your generation will impact this world more than all the generations past. And you have an opportunity to do some amazing, positive things. Or not.”Tags: Corey Robinson, David Robinson, Fr. John Jenkins, Martin Luther King, Walk the Walk Week Community members gathered Monday in the Joyce Athletic and Convocation Center for a luncheon celebrating the legacy Dr. Martin Luther King, Jr. Serving as a culmination of the University’s third annual Walk the Walk Week — which promotes diversity and inclusion on campus — the event featured thoughts and insights from a handful of community members. The keynote address was a conversation between former student body president and 2017 alumni Corey Robinson and his father, former NBA basketball player David Robinson, about King’s impact on the world.last_img read more

Kilruane and Kiladangan reach North Tipp SHC final

first_imgIt’s being held at Kilruane’s ground to mark the role played a century ago by local man Thomas McDonagh in the Easter Rising. The former – who are through to the divisional decider for the first time since 1990 – beat Burgess 3-12 to 1-14 in the semi-finals of the competition.Kiladangan advanced on the back of a 2-25 to 1-10 win over Roscrea.The final will be played in Cloughjordan next Sunday.last_img

International Tennis Federation deepens integrity partnership

first_img David Lampitt, Sportradar: F1 presents betting’s most sizeable opportunity August 14, 2020 Submit Björn Nilsson: How Triggy is delivering digestible data through pre-set triggers August 28, 2020 StumbleUpon Share Related Articles Sportradar combats social media abuse with player protection solution August 17, 2020 Share The International Tennis Federation (ITF) has announced an extension of its partnership with Sportradar, as it seeks to strengthen its integrity protection measures.As part of the fresh deal the sports betting solutions provider will use a fraud detection system, designed to monitor betting patterns across more than 50,000 ITF Pro Circuit tennis matches.Carsten Koerl, Sportradar Founder and CEO, commented: “The ITF is taking the significant step of putting the highest level of integrity protection in place. “I am proud that our long-term partner has done this by building on the measures already implemented around tour structure, tournaments, and umpires. “This step, when aggregated with all the ITF’s other initiatives, should offer reassurance to players, fans and other stakeholders in tennis.”The Tennis Integrity Unit (TIU), who are primarily responsible for investigating breaches of the Tennis Anti-Corruption Program, are also now able to utilise Sportradar’s intelligence and investigations capabilities, under the terms of the fresh agreement.It is hoped that the service provided by Sportradar will make a significant addition to the ITF anti-corruption measures currently in place at Pro Circuit events.The ITF states that current measures in place at Pro Circuit level includes “accredited areas, monitoring, training and mentoring of tournament and match officials, and increased video streaming of matches”.David Haggerty  ITF President, said: “We are pleased to be further developing our relationship with Sportradar in order to enhance our integrity protection measures. “Combating match-fixing and other forms of corruption in tennis is crucial in ensuring the long-term health of the game. “These new developments build on our long-term partnership with Sportradar to develop and provide ITF Pro Circuit data and content for fans worldwide. “Sportradar brings added expertise and capabilities to existing anti-corruption measures, and shares our commitment and passion for protecting the integrity of the game.”last_img read more

Emery turns to Europa League to salvage Arsenal’s season

first_imgHowever, winning the Europa League would also offer a much-needed return to the Champions League next season after a two-year absence.For 20 years under Arsene Wenger, Arsenal enjoyed the riches and the glamour of the Champions League and the impact of missing out has had serious implications on the budget Emery has had to work with.In January, he revealed the club could not afford to make any permanent signings.Emery is a specialist in Europe’s second-tier competition, winning it three times when at Sevilla, and he is also well acquainted with Arsenal’s semi-final opponents, Valencia, who he managed between 2008 and 2012.Unai Emery has constantly changed personnel and formations, but is yet to find the right balance at Arsenal with one of his two star forwards Alexandre Lacazette (picture) and Pierre-Emerick Aubameyang often left out © AFP/File / Lindsey PARNABYEmery also did a stellar job at the Mestalla, leading Valencia to three consecutive third-placed finishes behind dominant Barcelona and Real Madrid sides managed by Pep Guardiola and Jose Mourinho.“Emery was inducted into the Valencia hall of fame as one of the managers to have spent most time at Valencia, qualifying the team for the Champions League and performing well in it,” Valencia-based journalist Luis Cortes told AFP.However, doubts remain over his ability to lead Arsenal’s rebuild back to the heights they once enjoyed under Wenger.– Balance missing –The same defensive issues that haunted the Frenchman’s final years in charge have been in evidence in recent weeks, conceding three times in three consecutive league defeats for the first time since 1967.Emery has constantly changed personnel and formations, but is yet to find the right balance with one of his two star forwards Alexandre Lacazette and Pierre-Emerick Aubameyang often left out.Arsenal have had notable successes, winning home and away to Napoli in the Europa League quarter-finals © AFP/File / Andreas SOLAROYet, there have been notable successes. Top-four rivals Tottenham, Chelsea and Manchester United were all beaten at the Emirates this season and Emery’s men won home and away to Napoli in the Europa League quarter-finals.Arsenal go into the final two games of the league season just two points off the top four, compared to languishing 12 points behind in Wenger’s final season.“At the beginning of the season we knew it was going to be very difficult (to finish in the top four),” said Emery after the weekend’s chastening 3-0 defeat at Leicester.“We will continue, we will not look at the table, the Europa League is a big motivation for us.”Valencia find themselves in a similar situation to Arsenal in looking at the Europa League to save a disappointing domestic season.A shock 1-0 home defeat to Eibar on Saturday leaves Los Che sixth in La Liga and three points outside the top four with three games left.Former Arsenal defender Gabriel Paulista will return to the Emirates on Thursday and wants to mark Valencia’s centenary year in style.“I want to be in the history of Valencia,” said the Brazilian.“It is the year of the centenary and in 100 years’ time I want people to remember that Gabriel Paulists won the Europa League with Valencia,” he told the club’s website.0Shares0000(Visited 1 times, 1 visits today) 0Shares0000Arsenal boss Unai Emery won the Europa League three times with Sevilla © AFP / MARCO BERTORELLOLONDON, United Kingdom, May 1 – Unai Emery’s first season in charge at Arsenal is in danger of imploding unless the Spaniard can again prove himself to be a Europa League specialist and cover up an alarming dip in the Gunners’ Premier League form.Arsenal have lost four of their past five league games to Everton, Crystal Palace, Wolverhampton Wanderers and Leicester City to slip down to fifth and relying on more favours from Chelsea or Tottenham to have any chance of a top-four finish.last_img read more