Some mortgage proof of claim expenses allowed: In re Zunner

In re Zunner Bk 08-10862 (Decision November 5, 2008; Judge Bucki, Buffalo). In Chapter 13 case where the mortgage bank filed a proof of claim for the bank’s expense in obtaining a title report and a broker’s price opinion, even though the mortgage was current at the time the petition was filed. The mortgage allows the bank to charge the borrower “any amount that the lender expends under this mortgage to protect the value of the property and lender’s rights in the property.” Judge Bucki ruled that the $100 titled report was a justifiable expense, as the mortgage was in default at the time the report was prepared. The $100 broker’s price opinion was not a justifiable expense, as it did not protect the value of the property.