Wallingford v. Green Tree Servicing, LLC, Case No. 12-4174 (6th Cir. 2012)
After losing in the United States District Court, the bank, which owned the Mobile Home Loan that was subjected to Cramdown, appealed the decision of the District Court to the United States Court of Appeals for the Sixth Circuit. The Sixth Circuit affirmed the decision of the District Court and held that a Mobile Home Loan could be subjected to a Cramdown unless: (1) the Title to the Mobile Home had been surrendered to the Clerk of Court; (2) the Mobile Home was affixed to a permanent foundation; AND (3) the Debtor was the owner of the Mobile Home and the Real Property on which it was located.
Greg's Clients, therefore, won this case and were only required to pay $20,000.00 on the secured portion of a $100,000.00 Mobile Home Loan. The results were phenomenal. The Clients paid off the $20,000.00 portion of their loan in 5 years rather than $100,000.00 over the remaining life their 30 year mortgage. This saved Greg's Clients over $200,000.00 in principle and interest charges.