Tag Archives: underwater homes

SCOTUS: 2nd mortgages on ‘underwater’ homes cannot be voided in Chapter 7 bankruptcy

In Bank of America v. Caulkett, the Court declined to allow a Chapter 7 bankruptcy debtor to “strip down” a mortgage lien that is junior to liens that claim all of the equity in a home, thus allowing those “underwater” liens to survive a discharge. Caulkett owned a house where the senior mortgage lien was greater than his... Read More >