In re: Eloy and Rosa Abrego
12 B 29855
Debtors own a two-flat and live in one of the units. They proposed a Chapter 13 plan in which the mortgage holder's claim would be modified. The mortgage holder objected on the grounds that its claim was "secured only by a security interest in real property that is the debtor's principal residence" pursuant to 1322(b)(2). After finding the statutory language ambiguous, the court turned to the legislative history and determined that Congress intended this anti-modification provision would protect only those mortgage holders whose claims were secured by real property that is exclusively the debtor's principal residence. Consequently, the debtors in this case could modify the mortgage holder's claim and the plan was confirmed. The court also found that the relevant date for determining the property's status is the date on which the security interest was created.