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From the Editor – Lien Stripping and Mortgage Modification
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By The Honorable William Houston Brown (Retired)
Escrow did not take mortgage out of protection of § 1322(b)(2). Interpreting case law from the Sixth Circuit, the court concluded that a mortgage pledging the escrow funds “as additional security for all sums secured” was not such additional security as to deprive the mortgage of anti-modification protection. The escrow, like a requirement of hazard insurance, was tied to protection of the real property. In re Capretta, ____ B.R. ____, 2015 WL 9283872 (Bankr. N.D. Ohio Dec. 18, 2015).
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The Honorable William . . .
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