Opinion
Case No. 10-23798-WL Adv. Pro. 12-00166
2012-07-06
In re: JEFFREY K. BOYD SHIRLEY A. JENKINS-BOYD Debtor JEFFREY K. BOYD SHIRLEY A. JENKINS-BOYD 702 Coffren Place Upper Marlboro, MD 20774 Plaintiffs v. SUNTRUST MORTGAGE, INC. SERVE:Sterling Edmunds, III, Chief Executive Officer 303 Peachtree Street, NE Atlanta, GA 30308 and SERVE: Resident Agent CSC Incorporating Svcs Co. 7 Saint Paul Street; 1660 Baltimore, MD 21202 Defendant and Adam M. Lynn, Esq. 4520 East West Highway; Suite 200 Bethesda, MD 20850
SEEN AND AGREED TO: John D. Burns, Esquire Counsel for Creditor SEEN AND AGREED TO: Adam Lynn, Esquire BWW Law Group, LLC
SO ORDERED
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WENDELIN I. LIPP
U. S. BANKRUPTCY JUDGE
(Chapter 13)
STIPULATION AND CONSENT ORDER RESOLVING COMPLAINT TO DETERMINE
UNSECURED STATUS AND AVOID LIEN OF
SUNTRUST MORTGAGE, INC. AND DECLARE TREATMENT PURSUANT TO
11 U.S.C. SS 105(a) and 506(a), (d), 28 U.S.C. SS 2201, 2202
and FED R. BANKR. P. 3012 AND ALLOWING CLAIM
WHEREAS, JEFFREY K. BOYD and SHIRLEY K. JENKINS-BOYD (the "Debtors" and "Plaintiffs"), by and through undersigned counsel, John D. Burns. Esquire, and The Burns LawFirm, LLC have filed a Complaint To Determine Unsecured Status and Avoid Lien of SunTrust Mortgage, Inc. ("SunTrust" or "Defendant") (the "Complaint"); and
WHEREAS, for the purposes of convenience, the Plaintiffs and Defendant have utilized defined terms from the above captioned adversary proceeding or the Amended Chapter 11 Plan which is currently of record for the purposes of convenience herein; and
WHEREAS, the Debtors own a property situate at 702 Coffren Place, Upper Marlboro, MD 20774 (the "Property"); and
WHEREAS, the Defendant filed an answer to the Complaint; and
WHEREAS, the Plaintiff has scheduled a first priority lien on this Property in favor of SunTrust, and in respect of same, on October 25, 2010, SunTrust filed a proof of claim as a secured claim in the amount of $768,329.57 [CI. 20-1] (the "Claim") in this case concerning the Debtor's Property; and
The Claim has been objected to by the Plaintiffs for reasons stated in the objection to claim (the "Objection"); and.
WHEREAS, the Plaintiffs and Defendant agree and stipulate that the value of the Property for the purposes of this adversary proceeding and the treatment of Defendant under any Plan of reorganization confirmed herein shall be $600,000.00
WHEREAS, the Plaintiffs and Defendant desire to resolve the Complaint, the Objection and the concomitant allowance treatment of any claim of the Defendant in the Debtor's Amended Plan, as may be further amended by any plan of reorganization which may be submitted as follows:
Class 2 shall be paid its Allowed Secured Claim of $600,000.00 as follows: Regular monthly Cash Distributions due each month for one hundred twenty (120) months at 5.00% interest in the monthly amount of $3,220.93 and as otherwise provided for under the loan documents unless modified with the consent of the Class 2 Claimholder until payment is made in full on the Allowed Secured Claim, which will require a balloon of $486,865.01 on the 10th anniversary of the Effective Date. Such payments shall commence on August 1, 2012 and shall balloon on August 1, 2022. The Debtors shall pay separately all taxes and insurance owed on the Property and shall be current on all taxes and insurance owed as of August 1, 2012. The completion of all plan payments for the purposes of obtaining a discharge and release of lien shall require that the Debtors comply fully with the foregoing treatment and make all payments including scheduled balloon payment no later than August 2, 2022.
Treatment of the Class 2 Claim as provided in this Plan shall entitle the Class 2 Claim to receive on account of its Allowed Secured Claim deferred Cash Distributions equivalent to the present value amount of its Allowed Secured Claim, of a value, as of the Confirmation Date, of at least the value of Class 2 Claimholder's interest in the Debtors' collateral, and for the realization by the Class 2 Claimholder of the indubitable equivalent of its Allowed Secured Claim, Upon payment in full of the Class 2 Claim in accordance herewith, the lien of the Class 2 Claimholder against the collateral, or any other property of the Debtors, shall be released.
Upon the entry of a final decree following the completion of all plan payments, the Class 2 Claim shall be discharged pursuant to 11 U.S.C. § 1141(d).
NOW THEREFORE, it is hereby STIPULATED and CONSENTED TO THAT:
1. The Plaintiffs and Defendant hereby stipulate that the filed Claim No. 20-1 shall be ALLOWED in the amount of $600,000.00 as a Secured Claim and ALLOWED in the amount of $168,329.57 as an Unsecured Claim for the purposes of treatment under any confirmed plan of reorganization proposed and confirmed by the Debtors, and upon entry hereof the Objection to Claim filed by the Debtors as to the SunTrust Claim at 20-1 is denied. The Debtors shall seasonably file a Withdrawal of the Objection to such claim.
2. The first priority Secured Claim or lien that Defendant may hold or assert against the Property is declared AVOIDED and NULL and VOID as to the Property to the extent it exceeds $600,000.00.
3. The effective date of this Order shall be concurrent with the completion of plan payments under a confirmed plan of reorganization. Following 14 days from entry of the notice of completion of plan payments under any confirmed plan of reorganization herein, the Debtors or any party in interest may record a copy of this Order with the land records at the State Court of appropriate jurisdiction wherein the Property is situate, and it shall serve as prima facie evidence to the lack of any lien or secured claim against the Property by the Defendant which exceeds $600,000.00, or any successor to or assignee of the Defendant respective to the same debt addressed hereby.
SEEN AND AGREED TO:
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John D. Burns, Esquire
Counsel for Creditor
SEEN AND AGREED TO:
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Adam Lynn, Esquire
BWW Law Group, LLC
I HEREBY CERTIFY that the terms of the copy of the consent order submitted to the Court are identical to those set forth in the original consent order; and the signatures represented by the /s/ on this copy reference the signatures of the consent parties on the original consent order.
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John D. Burns
IT IS BY THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF MARYLAND, HEREBY SO ORDERED.