Chris Hawkins Quoted in Mortgage Servicing News on the Supreme Court’s Decision Regarding Voiding Second Mortgages
Mortgage Servicing News
Chris Hawkins was quoted in Mortgage Servicing News regarding the Supreme Court’s decision, holding that second mortgages cannot be voided within bankruptcy courts because the lien exceeds the home’s value.
"The ruling also may have a chilling effect on loss mitigation negotiations in Chapter 7 cases, given the potential 'veto' power that junior lienholders may have in discussions between the debtor and senior lienholder," Hawkins stated in a post on Bradley Arant's blog, Financial Services Perspectives. "This ruling eliminates a potential means for Chapter 7 debtors to maximize the relief associated with their discharge and provides junior lienholders with leverage in loss mitigation discussions between the debtor and the senior lienholder."
Read the complete article, “Second-Lien Holders No Longer Second Class,” which first appeared in Mortgage Servicing News on June 3, 2015.