Motion to Avoid primary mortgage Lien???

[Dewey]

What is the name of your state (only U.S. law)? AZ

We hold a voluntary 2nd Trust Deed on our debtors who recently declared bankruptcy pro se. They made a motion to avoid our lien since they wanted to exempt the house and we objected and requested a hearing.

I went to the courthouse yesterday and discovered that despite their stated intention of reaffirming the house, they haven't made their mortgage payments in 4 months. Understandably, their mortgage company promptly filed a Motion for Relief of Stay. It seems they are now underwater and the mortgage company would foreclose in deficiency--so of course we anticipate our lien being wiped out very soon.

But what really surprised me was that the debtors apparently filed a Motion to Avoid Lien on the mortgage company in response! This Motion has no merit, right?

Since they are pro se, I am confident they REALLY don't know what they are doing. We got word that the debtors think they can keep the house without paying for it and that the bankruptcy protects it. Obviously, they'll find out shortly.

Anyway, I'm wondering if the court does anything about this bizarre Motion by the debtors? It seems the mortgage company has ignored it.