The Mortgage Foreclosure Litigation Clinic at Yale Law School, along with the Connecticut Fair Housing Center (CFHC), has filed an Amicus Brief with the Supreme Court of the United States in support of Respondents, David Caulkett and Edelmiro Toledo-Cardona, in Bank of America v. Caulkett. The case presents the question of whether wholly underwater second mortgages can be voided in bankruptcy as unsecured liens.
The question of second mortgages is especially pertinent in Connecticut. Hartford, Connecticut, holds the dubious distinction of being the “most underwater” city in the nation, with a negative equity rate of 56%*. Connecticut is also home to three other cities in the top one hundred towns with the highest negative equity in the country, including New Haven. The Supreme Court’s ruling in Caulkett has the potential to affect the many Connecticut residents with underwater second mortgages by providing a helpful alternative to foreclosure for resolving their mortgage troubles, according to the clinic.