Adversary Proceeding

[Nanzee]

On March 8th we had an adversary proceeding - our 2nd mortgage is disputing the lein strip. So, will the bank's attorney question us? Is it just between them and our attorney? Will the trustee also likely be there? I know, I will call my attorney this week and ask him if we need to prepare in any way, but just looking for any personal experience here. Going to court is always unnerving for us. Thanks again for any input.

[Nanzee]

I apologize I meant to say on March 8th we will have our proceeding (did not have it yet).

[forgotten]

I do not know if you have to personally attend or not... but...

About the only thing they would be doing is objection to your home value. You (or your attorney) need to come ready with proof of the homes currrent market value.

[Nanzee]

Our attorney sent us a copy of his reply - we had a CMA done on our home: "The total amount due on the first mortgage bond and lien against the Real Property is $362,388.34 and the value of the property is $325,000.00 After deducting the mortgage lien from the fair market value of the property, there is negative equity of $37,388.34 in the property. The plaintiffs own the property jointly and both reside there. There is insufficient equity in the property to secure the subordinate judgment lien of the defendant, and the mortgage lien on the loan held by U.S. Bank is fully unsecured......."
Anyway, I am just hoping we do not have to answer any questions from their attorney, but we did receive a "Summons and Notice of Pretrial Conference in an Adversary Proceeding" so I do believe that means we have to be there.

[HHM]

I doubt you need to attend, but your attorney will tell you. The AP's on home value are "battles of the experts". The 2nd mortgage will call a witness to testify as to the value of the home, and your attorney will (should) call an expert to testify to the value of the home (assuming the case goes that far).

I have seen an up-tick in 2nd mortgages disputing lien strips. Usually the situation can be worked out.

[indebt00]

We didn't have to attend our adversary proceedings. and I am pretty sure they were strictly for our lawyer to show the judge that our 2nd mort holder had not responded to him and the lien strip should be approved. it was approved. then the judge ordered the lien to be stripped at the end of our Bk.

so all good in the end. We didn't have to do anything. The only reason we knew about it was because the notice came to us and I tracked on Pacer.

[Nanzee]

Okay, I hope you all are right, and we do not have to go. But I could have sworn our attorney said we would have to. I will call him tomorrow to verify. Thanks again for all of your input.

[Nanzee]

Well just updating here. My attorney told me today that he received a fax from my 2nd mortgage co. on Friday agreeing to the lien strip, so there was no court proceeding today. Now it is on to another confirmation hearing this Thursday, and I am hoping we get through that without too much damage. Of course I am mostly concerned about our payment amount - where it is at right now is working very well for us. Anyway, thanks again for all the input.

[HHM]

Sounds good. That is the typical outcome.

[cc8225]

I hope my luck is as good as yours. I am stripping the 2nd and 3rd. Our court date is set for 4/22/10. So far no disputes...

[jessegirl]

I am lost on all of this...Did you already have a confirmation hearing and then the bank objected against the lien strip? Once you have your confirmation hearing the bank is no longer allowed to object right? If someone can let me know these answers I would appreciate it.

Thankx

[Nanzee]

At our first confirmation hearing (1/9) 2nd mortgage faxed in an objection the night before - so confirmation hearing was delayed. The adversary proceeding was scheduled for 3/8, and the 2nd mortgage company sent in a fax the Friday evening before that they are agreeing to the lien strip. So no proceeding. We were supposed to have our second confirmation hearing today, but were adjourned until 4/8 - our attorney told us he thinks he can get us confirmed before then, so we won't have to go, but really, who knows? I will just keep sending in my payments - have made 4 so far.