If you can find a jury that would “feel sorry” for the banks, good luck. It appears this was originally a HUD deal and the agency isn’t structured as a “for profit” entity. It is structured to enable affordable construction of low-income housing. When the 2008 crash hit (and continues) as a result of the corrupt unregulated derivative scheme, the construction industry was, and still is, devastated. Construction, construction materials, labor & housing were the 2 driving wheels on the truck of the economy – and have been flattened due to the illegal antics of the past 20 years, and particularly the last 10 years. If a debtor, or any homeowner is capable of making payments pursuant to a reasonable plan – for the sake of the economy, the plan should move forward.
After TRILLION$ paid out by the banks in bailouts, fines, settlements and compensation for corruption and illegal activities, banks don’t deserve the benefit of doubt – or gifts from the courts. “Our courts should not be collection agencies for crooks.” — John Waihee, Governor of Hawaii, 1986-1994.
First Southern Nat’l. Bank v. Sunnyslope Housing Ltd. P’ship. (In re Sunnyslope Housing Ltd. P’ship.), 859 F.3d 637 (9th Cir. 2017) –
A creditor appealed a bankruptcy court order valuing a secured claim at $3.9 million for purposes of a Chapter 11 plan. The district court affirmed, but the Court of Appeals panel reversed and remanded. Then the 9th Circuit granted a rehearing en banc. The primary issue was how to value property subject to low-income housing restrictions. The court also addressed the proper “cramdown” rate and feasibility of a 40-year balloon payment plan.
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