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Bankruptcy Litigation

Ninth Circuit Finds That 1111(b) Deemed-Recourse Rights Do Not Survive Foreclosure Of Underlying Property

The Ninth Circuit recently announced in Mastan v. Salamon (In re Salamon) that a secured creditor with a nonrecourse mortgage cannot assert a claim for any deficiency if the underlying property is foreclosed on during the bankruptcy case. Here's an analysis of the decision.

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The U.S. Circuit Court of Appeals for the Ninth Circuit recently announced in Mastan v. Salamon (In re Salamon) that a secured creditor with a nonrecourse mortgage cannot assert a claim for any deficiency if the underlying property is foreclosed on during the bankruptcy case. 854 F.3d 632 (9th Cir. 2017).

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