"Judge Leslie Tchaikovsky ruled that a National City HELOC that had been "foreclosed out" would be discharged in the debtors' Chapter 7 bankruptcy. Nat City had argued that the debt should be non-dischargeable because the debtors made material false representations (namely, lying about their income) on which Nat City relied when it made the loan. The court agreed that the debtors had in fact lied to the bank, but it held that the bank did not "reasonably rely" on the misrepresentations."

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truehollywood at 10:17 2008-05-29 said:
This is another nail in the coffin for big second mortgage lenders like CW, Wells, Citi and Chase. I was told at least 15% of each of these lenders portfolio of A paper seconds are stated. Permalink

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