The loss of a deferral status may require a large tax liability to be repaid at once and could lead to tax foreclosure, wiping out the mortgage lien
On the other hand, if there is no excess equity beyond the amount due on the first mortgage, then the second mortgage lien
may be modified by the Bankruptcy Court.
The court found that the county's attempt to assert that a code enforcement lien created by ordinance was superior in right to a prior recorded mortgage was a substantial impairment of the first mortgage lien
for federal and state constitutional purposes.
773 (1992) (the Court held that the Chapter 7 debtor was not allowed to reduce a $120,000 mortgage lien
to the judicially determined property value of $39,000; the debtor would enjoy a windfall if the property value increased by the time of foreclosure sale).
As addressed in Decon, the lender must always be cautious and hire experienced legal counsel to ensure that the deed in lieu is structured in a manner that will not result in merging the mortgage lien
with title to the property upon consummation of the transaction.
The confirmed plan provided that the debtor would strip off Bank of America's second mortgage lien
because the lien was wholly unsecured.
Also, the Term Loan B is secured by a first mortgage lien
on the real property of each of the company's Gaylord Hotels properties, pledges of the equity interests in its subsidiaries that own the same properties, its personal property, its operating partnership and the guarantors of the Term Loan B and all proceeds and products from its Gaylord Hotels properties, the company mentioned.
Two of the factors contributing to Mercantile's success this year — the company's loan volume is up 178 percent over the same period in 2011 — have been the SBA 504 loan refinance and First Mortgage Lien
Pooling (FMLP) programs, which expired on September 27, according to Hurn.
According to Fannie's announcement, "Fannie Mae requires servicers to protect the priority of the mortgage lien
and to clear all liens for delinquent homeowners' association (HOA) dues and condo assessments on properties acquired through foreclosure or deed-in-lieu of foreclosure.
As a result of Daniel's inability to recover under either equitable or legal subrogation, the court held that, "[w]hen a first mortgage lien
existing against real estate is paid off, the lien of a second mortgage thereon becomes at once, by operation of law, a first lien on the property.
The fourth loan to monetize was a "B" piece of a $28 million bridge loan made to a New York City developer in 2006 and secured by a first mortgage lien
on a property in Tribeca.