The U.S. Supreme Court agreed to hear two Bank of America Corp. appeals that seek to give lenders more leverage over homeowners who file for bankruptcy protection, Bloomberg News reported yesterday. The question in the cases centers on whether homeowners can use bankruptcy liquidation proceedings as a means of wiping out, or “stripping off,” all liability on a second mortgage. Bank of America is seeking to overturn rulings by an Atlanta-based federal appeals court with jurisdiction over three Southeastern states. The lender says hundreds if not thousands of homeowners in those three states have sought to strip off the liens on their second mortgages. Other federal appeals courts around the country have refused to let homeowners wipe out second-mortgage debt in bankruptcy liquidation proceedings.
http://www.bloomberg.com/news/print/2014-11-17/bank-of-america-gets-u-s…
The cases are Bank of America v. Caulkett, 13-1421, and , 14-163. For more information and court filings, please click here: http://news.abi.org/court-decisions