WASHINGTON (AP) — A unanimous Supreme Court says homeowners who declare bankruptcy can’t void a second mortgage even if the home isn’t worth what they owe on the first mortgage.
The justices recently ruled in favor of Bank of America in two Florida cases where bankrupt homeowners wanted to “strip off” a second loan because they were underwater on the primary mortgage.
Lower courts allowed both homeowners to nullify the second loans and the Atlanta-based 11th U.S. Circuit Court of Appeals affirmed both cases.
But Bank of America said the rulings conflicted with Supreme Court precedent. The company argued that the second loan might be repaid eventually if the property’s value rises.
The homeowners argued that the second loans were basically worthless.
- Posted June 11, 2015
- Tweet This | Share on Facebook
Court: Bankrupt homeowners can't void second mortgage
headlines Macomb
- Bodman attorney displays passion for tax law
- Children Trust Michigan raises awareness of Child Abuse Prevention Month
- Law school’s team wins William and Mary Colonial Cup Competition
- Chief Justice Roberts, Attorney General Garland, author John Grisham join legal aid leaders to mark 50th anniversary of LSC
- Macomb County Board of Commissioners Announces commissioner vacancy
headlines National
- Incarceration series includes female inmates but doesn’t tell full story
- ACLU and BigLaw firm use ‘Orange is the New Black’ in hashtag effort to promote NY jail reform
- Former DOJ official who alleged election fraud violated at least one ethics rule, ethics committee says
- Winston & Strawn will provide reduced-cost legal services for routine tasks under Winston Legal Solutions umbrella
- Should Justice Sotomayor retire? Chemerinsky, White House haven’t joined calls for her to step down
- Which BigLaw firms are increasing lateral associate hiring the most? One made legal headlines last year