The Traderszone Network

Published in TZ Latest News 1 June, 2015 by The TZ Newswire Staff

U.S. top court says 2nd mortgages on ‘underwater’ homes cannot be voided in bankruptcy

The U.S. Supreme Court on Monday handed a win to Bank of America Corp by ruling that a second mortgage on an “underwater” home – one with a mortgage balance exceeding its current value – cannot by voided during bankruptcy. On a unanimous vote, the court ruled against two homeowners, David Caulkett and Edelmiro Toledo-Cardona, in Florida, where many homeowners have struggled to pay their mortgages following the recent housing crisis. Caulkett and Toledo-Cardona had both won before the regional appeals court that oversees Florida.