Grano v. Wells Fargo Bank, N.A. (In Re Grano)

DECISION & ORDER

BUCKI, Chief Judge.

The issue before the court is whether the rationale of In re Pond, 252 F.3d 122 (2nd Cir.2001) will allow a debtor in Chapter 7 to avoid a second mortgage on real property whose value is fully encumbered by a prior lien. Stated differently, does the Second Circuit’s decision in In re Pond create an exception to the limitations on lien avoidance, as stated by the Supreme Court in Dewsnup v. Timm, 502 U.S. 410, 112 S.Ct. 773, 116 L.Ed.2d 903 (1992)?

Joseph and Ann Grano own a residence at 90 Rollingwood Street in the Town of Amherst, New York. After filing a…