BAC Home Loans Servicing a/k/a Countrywide Home Loans Servicing, LP (BAC) appeals the bankruptcy court’s order (1) approving the debtors’ motion to value and “cram-down” real property subject to BAC’s deed of trust, and (2) confirming their chapter 11 plan of reorganization that modified BAC’s claim.
The bankruptcy court determined that the debtors could modify BAC’s claim secured by the debtors’ real property because it found that at the time of plan confirmation, the debtors were not using the property as their residence, exempting it from the anti-modification provision of Bankruptcy Code Section 1123(b)(5).
The Bankruptcy Appellate Panel concluded that the appropriate time for determining whether property is a debtor’s principal residence is the petition date.
Reversed.
[gview file=”http://www3.ce9.uscourts.gov/Web/bap.nsf/B0AC50933CD09D78882579120062EC53/$file/Abdelgadir-11-1021.pdf”]