Case Conclusion Date: February 4, 2009
Practice Area: Bankruptcy / Chapter 13
Outcome: The order of the bankruptcy court was affirmed.
Description: Appellant debtors sought judicial review of a bankruptcy court's order that appellee lender's claim pursuant to a security deed covering the debtors' land and mobile home should not be modified upon the confirmation of their modified Chapter 13 plan. The bankruptcy court found that the claim was secured by a security interest in real property consisting of the debtors' principal residence and could not be modified under 11 U.S.C.S. § 1322(b)(2). The issue on appeal was whether the bankruptcy court erred in finding that the debtors' mobile home was part of their real property and covered under the applicable security deed on their property. It was undisputed that the lender held a security deed covering the real property upon which the debtors' mobile home rested. It was also undisputed that the mobile home has served as the debtors' principal residence. The bankruptcy court did not err in finding that the debtors' mobile home became a permanent attachment to their real property real property and thus should be considered part of the real property for purposes of § 1322(b)(2). Not only had the mobile home's tongue, wheels, and axles been removed, but a mortared cinder block foundation was built around the mobile home. Furthermore, external air conditioning units were installed, along with a septic system, a drilled well for water, and electrical service. Contrary to the debtors' assertion, O.C.G.A. § 8-2-181 was inapplicable. The evidence supported the bankruptcy court's conclusion that the parties intended the mobile home to be part of the real property covered by the lender's security deed.