Opperwall

BACKGROUND

In 2007, Opperwall obtained a $900,000 loan from the Bank to buy a house in Pleasanton, CA. The loan was secured by a Deed of Trust (Deed). In February 2012, Opperwall filed a Chapter 13 bankruptcy petition. Opperwall’s bankruptcy schedules stated that he owed the Bank $958,437.45 on the loan, including approximately $50,000 in arrears, and that the property was then worth $885,000. In April 2012, Opperwall submitted a Chapter 13 plan (the plan), which proposed that Opperwall would pay the arrearage on the loan through the trustee at a rate of $500 per month for 6 months, then $1,504.18 per month for 54 months. The plan further proposed that Opperwall would pay the bank directly $2,724.66 a month for the 60-month duration of the plan. Although the plan was premised on Opperwall obtaining a loan modification prior to confirmation of the plan, no loan modification was obtained and the plan was confirmed by the bankruptcy court.

2 In August 2014, the Bank moved to dismiss the bankruptcy case, alleging that no loan modification agreement had been made. The bankruptcy court denied the motion, finding that Opperwall had not breached the plan but that payments under the plan…