TBA Law Blog


Posted by: Stacey Shrader Joslin on Nov 17, 2014

The U.S. Supreme Court said Monday it will decide whether homeowners who declare bankruptcy can void a second mortgage if the home’s market value has dropped below the amount they owe on the first mortgage, the Memphis Daily News reports. The case involves Florida homeowners who were allowed to nullify second loans held by Bank of America. The Atlanta-based 11th U.S. Circuit Court of Appeals affirmed both cases, but Bank of America says the rulings conflict with Supreme Court precedent and the rulings of other appellate courts that have considered the issue.