Bank of America forgiving 2nds
Posted: Thu Oct 11, 2012 1:51 pm
My client, upon calling BoA about this letter, was told that BoA would in fact release the lien in about 90 days or less,
I guess no harm done in waiting 90 days;Q. is the letter from the bank sufficient that the debt has been satisfied after the lien has been released and Ch13 Trustee
will exclude the debt from Class 5.
________________________________
To: cdcbaa@yahoogroups.com
Sent: Thursday, October 11, 2012 10:45 AM
Subject: Re: [cdcbaa] Don't be fooled: Bank of America forgiving 2nds
Dennis,
I agree with you that it is best to assume that the Bank is not giving up its lien. However, since they are reporting to the IRS, and receiving some tax benefits on the "forgiveness", I wonder if an argument can be fashioned that they are thereafter estopped from asserting their lien rights
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________________________________
To: cdcbaa@yahoogroups.com
Sent: Thu, October 11, 2012 8:30:22 AM
Subject: Re: [cdcbaa] Don't be fooled: Bank of America forgiving 2nds
The question is, are these letters the equivalent of a charge off, i.e. an accounting tactic, or are they true cancellations? I am trying to get professor Porter from Irvine, to opine regarding the effect of these letters and where they fit in the settlements, but she has not yet replied.
Until there is a final appellate decision take the safe position and continue to lien strip.
2nds are very dangerous. Unless there is an affirmative accelleration, the statute of limits only runs on payments that come due. The entire obligation is not due for 30 years, so, if you don't strip and these letters are later ruled accounting gimics, like a charge off, you client will get sued in ten years, after the market comes back. And, of course, you will be a malpractice target.
D
axel richter wrote:
>1. Your clients got a letter not a contract or lien release, lien still exists!
>2, Those of you you got a Stip Or LAM need a proof of claim of $0.00 or trustee will pay when $ becomes available for unsecured,
>3. Get a lien release from the bank based on the letter of forgivenes and when lien is released forward to trustee, so no $ to unsecured second,
>4. Good luck
>
>
>________________________________
>To: "cdcbaa@yahoogroups.com"
>Cc: "cdcbaa@yahoogroups.com"
>Sent: Monday, October 8, 2012 12:46 PM
>Subject: Re: [cdcbaa] Bank of America forgiving 2nds
>
>
>
>To discharge it? People don't actually like paying the 2nds if they don't need to. I'm intrigued by your comment though. Explain.
>
>Sent from my iPad
>
>On Oct 6, 2012, at 5:11 PM, "PHiLiP E. KOeBeL, Esq." wrote:
>
>
>
>>
>>Indeed. why ever do a lien-strip on a 2nd?
>>
>>
1. Your clients got a letter not a contract or lien release, lien still exists!
2, Those of you you got a Stip Or LAM need a proof of claim of $0.00 or trustee will pay when $ becomes available for unsecured,
3. Get a lien release from the bank based on the letter of forgivenes and when lien is released forward to trustee, so no $ to unsecured second,
4. Good luck
________________________________
To: "cdcbaa@yahoogroups.com"
Cc: "cdcbaa@yahoogroups.com"
Sent: Monday, October 8, 2012 12:46 PM
Subject: Re: [cdcbaa] Bank of America forgiving 2nds
To discharge it? People don't actually like paying the 2nds if they don't need to. I'm intrigued by your comment though. Explain.
Sent from my iPad
On Oct 6, 2012, at 5:11 PM, "PHiLiP E. KOeBeL, Esq." wrote:
>
>Indeed. why ever do a lien-strip on a 2nd?
>
>
The post was migrated from Yahoo.