Bank has one first mortgage on the entire property that secures two separate loans. Debtors concede that Bank has a secured claim, but the parties dispute the amount of that claim, with Debtor arguing that Bank is fully secured, and Bank demurring. Debtors here, however, do not identify which of the three alternative provisions of the statute they rely on. Thus, Debtors contend, turning over their interest in the property to Bank pays off Bank in full. Debtors did not bifurcate Bank's claim in their Plan, but treated it as fully secured.
Debtors make two arguments.
Accordingly, Bank will be paid in full by conveyance of Debtor's interest in the property. That's a totally independent claim by the co-owners that may be brought, may not be brought, may be successful, may not be. Record at 12. We reject both arguments. On the facts of this case, it is clear that Debtors cannot pay Bank's claim in full by conveying their interest in the property to Bank.