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High Court: Bankrupt Homeowners Can't Void Second Mortgage
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01.06.2015
A unanimous Supreme Court says homeowners who declare bankruptcy can't void a second mortgage even if the home isn't worth what they owe on the first mortgage. The justices on Monday ruled in favor of Bank of America in two Florida cases where bankrupt homeowners wanted to "strip off" a second loan because they were underwater on the primary mortgage. Lower courts allowed both homeowners to nullify the second loans and the Atlanta-based 11th U.S.
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