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Court Locations

6500 Cherrywood Ln - Greenbelt, MD 20770 - Main Tel: 301-344-8018 map
101 W Lombard St Room 8530 - Baltimore, MD 21201 - Main Tel: 410-962-2688

The Court overruled the Chapter 13 debtors’ objection to the secured claim of the holder of an indemnity deed of trust on their house issued to enable their daughter to purchase a house through a membership interest in a Maryland limited liability company. The daughter’s property was sold at foreclosure and the sale was ratified by the state court. Held, (1) the IDOT did not create any personal liability on the part of the debtors, (2) the IDOT served as security for the underlying promissory note, (3) although the promissary note was not filed with the proof of claim, its existence was not in dispute and therefore the proof of claim was sufficient, (4) the presentation of a check to the lender did not constitute tender of payment, and (5) because proper notice of the foreclosure sale was given to the daughter, the debtors’ objection would be overruled.

James F. Schneider