In re Residential Capital, LLC

MEMORANDUM OPINION AND ORDER DETERMINING THE AMOUNT OF ALLOWED CLAIM OF FRANK AND CHRISTINA REED

MARTIN GLENN, UNITED STATES BANKRUPTCY JUDGE

This is a case involving, on the one hand, seemingly undeserving borrowers — who have not paid their mortgage, property taxes, or homeowners’ insurance for over seven years but continue to occupy their home — and, on the other, a loan servicer that was willing to cut corners and ignore applicable law while proceeding with an improperly filed foreclosure action. Frank and Christina Reed (the “Reeds”) defaulted on their mortgage in early 2008; their default…