Tag Archives: chapter 7 bankruptcy
Mortgage Company’s Indemnification Claim Against Loan Officer Not Discharged In Bankruptcy
When Fidelity First Home Mortgage Company was found liable by a jury under the doctrine of respondeat superior when one of its loan officers engaged in a fraudulent foreclosure rescue scheme, it sued the loan officer seeking indemnification and contribution. The loan officer claimed that Fidelity’s claims were discharged ... Read More
SCOTUS: 2nd mortgages on ‘underwater’ homes cannot be voided in Chapter 7 bankruptcy
In Bank of America v. Caulkett, the Court declined to allow a Chapter 7 bankruptcy debtor to “strip down” a mortgage lien that is junior to liens that claim all of the equity in a home, thus allowing those “underwater” liens to survive a discharge. Caulkett owned a house where the senior mortgage lien was greater than his ... Read More