Posted by John Merchant on August 29, 2008 at 10:03:47:
In Reply to: Re: MH note cramdown by CH 13 Court posted by osupsycho (OK) on August 28, 2008 at 15:39:22:
Yeah, I can see it now:
You, as note holder, get the Notice that the Trustee has filed his Motion to Reduce (cramdown) your note, based on his allegation that the MH isn't worth nearly what the note balance is.
You show up for the hearing and the trustee calls you to the witness stand as an "adverse witness", meaning he has the right to cross-examine you.
His questions go like this:
"Mr. Psycho, what did you pay for that MH?"
"How much did you pay to clean it and rehab it before selling to Ms. Bankrupt?"
"What is the total money you spent on everything before selling it?"
Your lawyer might object to these questions as irrelevant, but the BK Judge might overrule and then be somewhat swayed by your answers and feeling sorry for your poor buyer...and then order your note balance be chopped way down.
So while I sympathize and sure see your side, being there myself on some MH notes I've held and do hold, I just recommend you not get complacent or think it couldn't happen to you.