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Recording within BK
The debt is already incurred. It is the same trust deed securing the debt. I don't recall the statute or case that provides for the recapitalized portion of the debt to be the junior most secured obligation on the property. I do recall discuss this with Lou Esbin, perhaps he will share that informaiton if he remembers.
Peter M. Lively, JD, MBA
The Personal Financial Law Center
A-Bankruptcy-Attorney.com
Culver City (310) 391-2400
________________________________
To: cdcbaa@yahoogroups.com
Sent: Tuesday, December 13, 2011 11:32 AM
Subject: Re: [cdcbaa] Recording within BK
Ok. So if this is true...And I have not seen it in prior cases, then would the appropriate motion to approve these modifications actually be:
1) Motion to Incur Debt
2) Motion to Refinance
If there is a new recording for each and every recap, then this effectively requires the refinance motion rather than the current motions being provided.
Am I over analyzing this?
________________________________
The post was migrated from Yahoo.
Ok. So if this is true...And I have not seen it in prior cases, then would the appropriate motion to approve these modifications actually be:
1) Motion to Incur Debt
2) Motion to Refinance
If there is a new recording for each and every recap, then this effectively requires the refinance motion rather than the current motions being provided.
Am I over analyzing this?
The post was migrated from Yahoo.
The balance of the loan that is recapitalizedbecomes junior to the judgment lien. You might be able to sell the lender on the option that the debtor file Chapter 7 and avoid the judgment lien under 522(f).
Peter M. Lively, JD, MBA
The Personal Financial Law Center
A-Bankruptcy-Attorney.com
Culver City (310) 391-2400
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Tuesday, December 13, 2011 8:10 AM
Subject: [cdcbaa] Recording within BK
Lender has agreed to recap 50k in an effort to modify the first while in Bankruptcy. There is a judgment lien on the property as well. The conditions for the modification are to pay off the judgment lien because the lender must record as a result of the "recap".
Does anyone have any insight as to why this is necessary if they continue to hold the first and the amount of loan can increase to the amount secured without a wholly new recording?
Thanks..
Ps ...below is the exact request word for word by the "person in charge". It is quite the read.
"The underwriter is requesting the borrower to provide proof that the judgment for 3927.67 held by Grant & amp; Weber be fully satisfied. The underwriter can't wait for it to be discharged/dismissed within the bankrutpcy plan. Since we are capping over 50,0000, the documents will need to be recording and becasue of policy and liens/judgments will need to fully satisfied before the borrower can be approved for a modification. The underwriter want be able to get the investor approval"
*****PLEASE NOTE - WE HAVE A NEW DOWNTOWN ADDRESS*****
Matthew D. Resnik
Attorney at Law
Los Angeles Office - Downtown
Simon and Resnik LLP
510 W. Sixth Street
Suite 1220
Los Angeles, Ca 90014
T:213-572-0800
F: 213-572-0860
Matt@resniklaw.com
www.simonresnik.com
San Fernando Valley - Sherman Oaks
Simon & Resnik, LLP
15233 Ventura Boulevard
Suite 300
Sherman Oaks, CA 91403
P: 818-783-6251 #2
F: 818-827-4919
The post was migrated from Yahoo.
Lender has agreed to recap 50k in an effort to modify the first while in Bankruptcy. There is a judgment lien on the property as well. The conditions for the modification are to pay off the judgment lien because the lender must record as a result of the "recap".
Does anyone have any insight as to why this is necessary if they continue to hold the first and the amount of loan can increase to the amount secured without a wholly new recording?
Thanks..
Ps ...below is the exact request word for word by the "person in charge". It is quite the read.
"The underwriter is requesting the borrower to provide proof that the judgment for 3927.67 held by Grant & amp; Weber be fully satisfied. The underwriter can't wait for it to be discharged/dismissed within the bankrutpcy plan. Since we are capping over 50,0000, the documents will need to be recording and becasue of policy and liens/judgments will need to fully satisfied before the borrower can be approved for a modification. The underwriter want be able to get the investor approval"
*****PLEASE NOTE - WE HAVE A NEW DOWNTOWN ADDRESS*****
Matthew D. Resnik
Attorney at Law
Los Angeles Office - Downtown
Simon and Resnik LLP
510 W. Sixth Street
Suite 1220
Los Angeles, Ca 90014
T:213-572-0800
F: 213-572-0860
Matt@resniklaw.com
www.simonresnik.com
San Fernando Valley - Sherman Oaks
Simon & Resnik, LLP
15233 Ventura Boulevard
Suite 300
Sherman Oaks, CA 91403
P: 818-783-6251 #2
F: 818-827-4919
The post was migrated from Yahoo.