Opinion
Case No. 08-19001PM.
October 30, 2008
MEMORANDUM OF DECISION
This case came before the court on the Debtors' Motion to Avoid two consensual liens on their residence. The Motions are based upon the proposition that the liens are avoidable as wholly unsecured claims under 11 U.S.C. § 506(b) and thus subject to cramdown under the doctrines pronounced in such cases as Johnson v. Asset Management Group, LLC, 226 B.R. 364 (D. Md. 1998), In re Bartee, 212 F.3d 277 (CA5 2000) and In re Dickerson, 222 F.3d 924 (CA11 2000). The liens at issue are as follows:
A. First Deed of Trust: HSBC Mortgage Services Proof of Claim #6 filed on July 29, 2008, in the amount of $285,919.09.
B. Second Deed of Trust: Homecomings Financial Services No Proof of Claim filed. Scheduled with a claim in the amount of $99,559.00.
C. Third Deed of Trust: Ocwen Loan Servicing, LLC servicing for HSBC Bank USA, National Association, as Indenture Trustee for the registered Noteholders of Renaissance Home Equity Loan Trust 2006-4. Proof of Claim #1 filed on July 17, 2008, in the amount of $70,487.98.
If the value of the subject property is less than the amount of the claim filed by the senior secured lender then the Debtors are entitled to the relief sought. For evidentiary support, the Debtors offered the report of the SDAT and from an entity known as Cyberhomes.com, whose expertise was not established.
While these reports are clearly hearsay and while it is often urged that the SDAT undervalues, the fact remains that while proper service of these Motions was made, neither of the purported secured creditors saw fit to file an answer. After consideration of the record and after the hearing held October 30, 2008, the court will grant the requested relief.
Appropriate orders will be entered.