In re Conley

          FINDINGS OF FACT AND CONCLUSIONS OF LAW RE DEBTOR'S MOTION TO VALUE COLLATERAL OF SELECT PORTFOLIO SERVICING, INC.

          WHITNEY RIMEL, Judge.

         A hearing was held January 29, 2009, on the motion of the debtor to value the collateral of Select Portfolio Servicing, Inc. ("Select Portfolio"). The motion was noticed under Local Bankruptcy Rule 9014-1(f)(1). No timely written opposition was filed. The court inadvertently marked the motion as resolved without oral argument and issued a pre-hearing disposition which indicated that the motion would be granted.

         That pre-hearing disposition was in error. By its terms, the motion cannot be granted.

         The declaration of Chris Conley in support of the motion states that the debtor wishes to value real property located at 1577 Vineyard Place, Hanford, California (the "Property").. Conley stated in his declaration that he believes the value of the Property at the time the petition was filed was $234, 630.

         At the time the petition was filed, there was a senior deed of trust in favor of Washington Mutual in the amount of $231, 507.62 and a second deed of trust securing the obligation to Select Portfolio in the amount of $57, 016.06. The value of the Property at the time the petition was filed exceeded the amount of the obligation secured by the first deed of trust by $2, 122.38. Thus, there is some equity to support the obligation owed to Select Portfolio. For that reason, the obligation owed to Select Portfolio may not be treated as entirely unsecured. See, 11 U.S.C. § 1322(b)(2). In this case, Select Portfolio is entitled to the protection of § 1322(b)(2) because there is some value to support its security, interest. See, In re Zimmer , 313 F.3d 1220 (9th Cir. 2002). See also. Lam v. Investors Thrift (In re Lam) , 211 B.R. 36 (9th Cir. BAP 1997).

         For the foregoing reasons, the motion to value collateral of Select Portfolio has been denied by separate order.