Oregon Bankruptcy Court Says Debtors’ Chapter 13 Plan Can Force Lender to Take Title to Property

US Bankruptcy Court For The District of Oregon decision (October 15, 2014):

The Debtors in this Chapter 13 bankruptcy proceeding owned a property located in a planned community where the property was subject to homeowners association assessments. The homeowners association had a judgment lien in the amount of $179,733 against the property.

In a Second Amended Chapter 13 Plan, the Debtors proposed that on confirmation of their Chapter 13 Plan, the property “shall be vested in the lender, its successors, transferees or assigns pursuant to USC 1322(b)(9), and that the vesting of title in the lender “shall not merge or […]

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