Key Pacific Mortgage v. Lester D. Helfrich, and Janet E. Helfrich

980 F.2d 737 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. KEY PACIFIC MORTGAGE, Appellant, v. Lester D. HELFRICH, and Janet E. Helfrich, Appellees. No. 91-35963. United States Court of Appeals, Ninth Circuit. Submitted Aug. 20, 1992. Submission Deferred Sept. 1, 1992. Resubmitted Dec. 8, 1992. Decided Dec. 9, 1992. Before HUG, D.W. NELSON and T.G. NELSON, Circuit Judges. 1 MEMORANDUM ** 2 On February 4, 1985, Lester and Janet Helfrich purchased their home with the aid of a mortgage loan that was secured by a deed of trust against the residence. The note and deed of trust were subsequently assigned to the Alaska Housing Finance Corporation and Key Pacific Mortgage Corporation (Key Pacific). The Helfrichs filed their Chapter 13 petition on October 5, 1990. Because of a downturn in the Alaskan economy at the time the petition was filed, the fair market value of the residence had fallen to $61,000, well below the $110,000 outstanding on the mortgage. 3 Over Key Pacific's…