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Orkwis v. MERS (In re Orkwis)

Orkwis v. MERS (In re Orkwis)

Ruling
Unsecured second mortgage could be avoided only after chapter 13 discharge.
Procedural posture

Debtors filed an adversary proceeding under 11 U.S.C.S. §§ 506(a), 522(f), 1322(b)(2), against defendant second mortgagee bank to avoid as wholly unsecured the second mortgage lien encumbering the debtors' residence. The bank defaulted and the debtors requested that the mortgage lien be avoided upon entry of the judgment by default, and that it not be conditioned upon entry of discharge.

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Consumer opinion summary, case decided on September 19, 2011 , LexisNexis #1011-133