The U.S. Supreme Court told the Atlanta appellate court to stop allowing the practice of stripping away liens to benefit bankrupt homeowners.
The court’s June 1 ruling in consolidated cases from the U.S. Court of Appeals for the Eleventh Circuit favors mortgage lenders and condominium associations holding liens for unpaid assessments. It resolves a conflict between the Eleventh Circuit approving lien-stripping and the Fourth, Sixth and Seventh circuits opposing it.
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