In re Battershell

Hon. David T. Thuma, United States Bankruptcy Judge

Before the Court is Debtor's objection to his mortgage lender's proof of claim. The *88lender had a home equity line of credit mortgage on Debtor's house, behind a large first mortgage. After both mortgages went into default and foreclosure, the lender paid off the first mortgage as a protective advance. Debtor argues that the transaction should be recharacterized as a loan purchase rather than a payoff, so Debtor can cure the arrearages on both loans in this chapter 13 and try to save his house. The lender counters that such a…