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Junior Mortgage Discharged Notwithstanding Fraud Allegations

  • Reno
    Macdonald Fernandez LLP

In Heritage Pacific Financial, LLC v. Montano (In re Montano), 13 C.D.O.S. 12820, NC-12-1579-PaDJu (9th Cir. BAP November 27, 2013), the Bankruptcy Appellate Panel of the United States Court of Appeals for the Ninth Circuit ruled that California’s statutory one-action rule and anti-deficiency judgment scheme barred an action under Bankruptcy Code Section 523(a)(2)(B) brought by the purchaser of a sold-out junior purchase money mortgage formerly secured by a residence for less than $150,000 regardless of any fraudulent conduct.

Fernandez, R. 2013, "Junior Mortgage Discharged Notwithstanding Fraud Allegations". In: Legal By the Bay, Bar Association of San Francisco, San Francisco, California.

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Tags: Discharge, Fraud, Mortgage, Junior, Lien, Claim, Bankruptcy,