The Mortgage-Follows-the-Note Rule[1] - Part I of IV • NACTT Academy

The Mortgage-Follows-the-Note Rule[1] – Part I of IV

(Reprinted from Norton Bankruptcy Law Adviser, September 2013, with permission. Copyright © 2013 Thomson Reuters/West. For more information about this publication please visit http://legalsolutions.thomsonreuters.com/.)

By James M. Davis, Staff Attorney Office of the Chapter 13 Bankruptcy Trustee, Nashville, TN

A longstanding common law principle, recognized in some form in all or nearly all jurisdictions, holds that the transfer of an obligation secured by a mortgage on property also constitutes a transfer of the mortgage. In its most robust form, this rule provides a valuable . . .

It looks like you are not signed in or registered! This content is only available to members.

Or Sign In Below:

No Author Biography has been linked to this Article.

Critical Case Comment – 3002.1 and Reverse Mortgages

Henry E. Hildebrand, III

January 23, 2022

Requirements and remedies in Rule 3002.1 apply to reverse mortgages as well as conventional mortgages; while discharge of Chapter 13 plan does not discharge a mortgage obligation treated pursuant to § 1325(b)(5), the court may prohibit prospective use of a nondisclosed obligation as grounds for a default. (Waites) In re Legare-Doctor, 2021 WL 5712149 (Bankr. D. S.C. Dec. 1, 2021)...

Members

New Trustee Named

The Academy

September 3, 2023

Tracy Updike of Harrisburg, Pennsylvania, has been named as a Chapter 13 Standing Trustee for the Northern District of Indiana. Updike will be filling the trusteeship vacated by Debra Miller when she accepted a trusteeship in the Eastern District of Tennessee.

From the Editor – Lien Modification

March 28, 2021

By The Honorable William Houston Brown (Retired) Junior mortgage lienholder not affected by modifications of senior mortgage. Under Pennsylvania law, the prepetition modification of terms of the senior mortgage had recapitalized interest and costs already owed but had not created new liabilities. As a result, the junior mortgage holder was not materially prejudiced. The Chapter 13 debtors could avoid the...

Members

“How Long, O Lord?”

November 29, 2020

By Angela M. Scolforo, Staff Attorney to Herbert L. Beskin, Chapter 13 Trustee for the Western District of Virginia “How long?” is a common plea. When my children were young and we travelled they would ask, “how long before we get there?” In scripture we find David, Habakkuk and Zechariah (none of whom were Debtors’ attorneys) all crying out, “how...

Members

Inclusion in Bankruptcy Doesn’t Equal “Discharged”

Cathy Moran

February 11, 2024

Communications Practice Pointer! Convincing clients that all of their debts must be included in bankruptcy is one of the hardest parts of being a bankruptcy lawyer. Communicating clearly with our clients, in their language, is a key part of our job. The struggle often seems Herculean.

Members

U.S. Trustee Fee Unconstitutional

The Honorable William Houston Brown

June 12, 2022

On June 6, the Supreme Court’s unanimous opinion in Siegel v. Fitzgerald1 held that the increase in U.S. Trustee fees in Chapter 11 cases violated the uniformity requirement of the Constitution’s Bankruptcy Clause,2 because the fee increase in 2017 only applied to in the U.S. Trustee districts and didn’t apply to the Bankruptcy Administrator districts in Alabama and North Carolina....

Who Gets the Trustee’s Fee and When?

August 8, 2021

By Henry E. Hildebrand, III, Chapter 13 Trustee, Middle District of TN (Nashville) Chapter 13 trustee is not compelled to return the percentage fee taken from a Chapter 13 case when the case is dismissed prior to confirmation. Harmon v. McCallister, 2021 WL 3087744 (9th Cir. BAP July 20, 2021) (Gan) Case Summary Douglas and Christine Harmon filed a Chapter...

Members

Tenancy by the Entireties and the § 522(f) Calculation

James M. Davis

February 25, 2024

“Over the years courts have struggled to apply the lien-avoidance provisions under § 522(f) to jointly owned property. . . .Things get even more confusing when the debtor owns property as a tenancy by the entireties. That antiquated form of ownership has odd characteristics that do not fit well into the § 522(f) calculation.”

Members

From the Editor

March 17, 2019

By Wm. Houston Brown, United States Bankruptcy Judge (Retired) Confirmation - Bankruptcy court could not sua sponte object to confirmation. Distinguishing between “self-executing” provisions of the Code and those sections that were not “self-executing,” and discussing Espinosa’s impact on that distinction, District Court held that the bankruptcy court could not sua sponte object to confirmation based on the above- median...

Members

Critical Case Comment – You Gotta Fix Your Own Screwups, on Your Own Dime

Henry E. Hildebrand, III

December 3, 2023

Debtor’s counsel should not be compensated for work undertaken on behalf of a debtor in order to correct errors.

Members