Craig Case, et al. v. PNC Bank
Jan 01, 2014OUTCOME: property sold free and clear of liens
Debtor received notice from his residence city that they would be demolishing his home, which they determined to be a "nuisance." Home was formerly a rental property with a $105,000 first mortgage and ... $20,000 second mortgage. An adversary civil action was filed against the lenders and the Court issued an order to remove both mortgages from the property because they had been abandoned by the lenders. Neither Lender took any action over several years to foreclose on the properties, becoming what is euphemistically known among bankruptcy lawyers as a "zombie" mortgage. Attorney, who is also a real estate sales agent, sold property for client free and clear of both mortgages and paid off Debtor's delinquent taxes.
