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IN RE HEUBUSCH

Bankruptcy No. 04-15927 B, Adversary No. 05-1001 B.

345 B.R. 49 (2006)

In re Diane V. HEUBUSCH, Debtor. Diane V. Heubusch, Plaintiff, v. Novastar Mortgage, Inc., Defendant and Third-Party Plaintiff, v. Citifinancial Company, Third-Party Defendant.

United States Bankruptcy Court, W.D. New York.

June 30, 2006.

Attorney(s) appearing for the Case

Barry M. Sternberg, Esq., Williamsville, NY, Attorney for Plaintiff.

Hiscock & Barclay, LLP, Bruce S. Zeftel, Esq., of counsel, Buffalo, NY, Attorneys for Novastar Mortgage, Inc.

Davidson, Fink, Cook, Kelly & Galbraith, LLP, Walter R. Capell, Esq., of counsel, Rochester, NY, Attorneys for Citifinancial Company (DE).

Albert J. Mogavero, Esq., Buffalo, NY, Chapter 13 Trustee.

DECISION & ORDER

CARL L. BUCKI, Bankruptcy Judge.

Pursuant to the Second Circuit's decision in Pond v. Farm Specialist Realty (In re Pond), 252 F.3d 122 (2001), the debtor seeks to avoid the lien of a third mortgage on her home. This seemingly simple request has opened a Pandora's box of challenges to the priority of the three outstanding liens. In particular, the present dispute involves the competing...

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