Bank of America v. Waits (In re Waits)
- Summarized by Kevin Gray , Alabama Farmers Cooperative, Inc.
- 9 years 5 months ago
- Citation:
- Bank of America Bank, N.A. v. Yvonne Roberts Waits (In re Yvonne Roberts Waits), No. 14-11408 (11th Cir. July 16, 2015) (per curiam).
- Tag(s):
-
- Ruling:
- Based on the United States Supreme Court's ruling in Bank of America, N.A. v. Caulkett, 135 S. Ct. 1995 (2015), the United States Court of Appeals for the Eleventh Circuit reversed the district court, which had affirmed the bankruptcy court's ruling that the Debtor could strip off Bank of America's junior lien when the senior lien exceeded the value of the property.
- Procedural context:
- This opinion was on remand from the United States Supreme Court. The Eleventh Circuit had previously affirmed the district court. Caulkett, however, vacated two Eleventh Circuit decisions holding that debtors could strip off junior liens when the senior liens exceeded the value of the property securing such liens.
- Facts:
- In her Chapter 7 case, Yvonne Roberts Waits had two mortgages on her house, one senior and one junior. The amount of the senior lien exceeded the value of the property. Based on Eleventh Circuit precedent at the time, the debtor moved to "strip off" Bank of America's junior lien pursuant to section 506(d) of the Bankruptcy Code. The bankruptcy court granted the debtor's motion, the district court affirmed and initially, the Eleventh Circuit affirmed the district court.
- Judge(s):
- Circuit Judges Tjoflat, Jordan and Black
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