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U.S. Supreme Court ruling preserving second mortgages in Chap. 7 bankruptcies exposes flaw in bankruptcy code for community associations

/ Owner - July 19, 2015

The recent decision by the U.S. Supreme Court in the case of Bank of America v. Caulkett represents an important win for mortgage lenders as well as community associations. The court ruled that homeowners who are underwater on their first mortgage cannot void second mortgages by filing for Chapter 7 bankruptcy, and the ruling also appears to apply to other secured lienholders including community associations.     Read the article………..

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