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IN RE BURCH

Bankruptcy Nos. 82-05835S, 83-02646K, Adv. No. 83-2067S.

88 B.R. 686 (1988)

In re Preston BURCH, Jr., Debtor. In re Delores MORTON, a/k/a Delores Burch, Debtor. Preston BURCH, Jr. and Delores Morton, a/k/a Delores Burch, Plaintiffs, v. FEDERAL NATIONAL MORTGAGE ASSOCIATION, and Samuel R. Pierce, Jr., Defendants.

United States Bankruptcy Court, E.D. Pennsylvania.

July 8, 1988.

Attorney(s) appearing for the Case

Autherine B. Smith, Community Legal Services, Inc., Philadelphia, Pa., for debtor.

Gary McCafferty, Philadelphia, Pa., for FNMA.

Edward Sparkman, Philadelphia, Pa., standing Chapter 13 trustee.

OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

Although neither of the parties has so framed the issue, we believe that the matters before us in this adversary proceeding present the question of whether a mortgagee can utilize a judgment obtained as a result of defaults in the mortgage preceding a settlement as the basis for enforcement of its rights when the mortgagor subsequently defaults on the settlement terms. We hold that the mortgagee cannot do so for...

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