This matter is before the Court for confirmation of the debtors= Chapter 13 plan. An objection to that plan has been filed by Oakwood Acceptance Corporation (AOakwood@), a secured creditor in the proceeding. Oakwood claims that it is entitled to the protections afforded by 11 U.S.C. '1322(b)(2) in that it claims it has a claim secured only by a security interest in real property that is the debtors= principal residence and the debtors may not, therefore, modify its rights in this Chapter 13 proceeding.

The debtors contend that Oakwood is not entitled to the protection afforded by 11 U.S.C. '1322(b)(2).

The mobile home involved was attached to real property and, while it is necessary to annotate a lien on the title to the mobile home in order to perfect the lien as to the mobile home itself, the requirement that a lien against the principal residence of the debtors be recorded in more than one place (in order to perfect as to the entire property) does not take the transaction outside of the parameters of 11 U.S.C. '1322(b)(2). Clearly, the lot and mobile home constitute the principal residence of the debtors in this matter.

The next question becomes whether or not the failure to perfect as to the mobile home has any effect upon the protection afforded by 11 U.S.C. '1322(b)(2). The net result of the failure to perfect as to the mobile home is simply that the creditor Oakwood has a lien only against the lot and the trustee succeeds to Oakwood=s improperly perfected lien against the mobile home. An argument might be made that when this mobile home is affixed to the lot, it becomes part of the real property and the mortgage lien against the lot itself also becomes a lien against the mobile home. However, in light of the unequivocal nature of KRS 186A.190 and the Court=s previous opinions in Langhorne and Raines, it appears that Oakwood is perfected in their lien only as to the lot itself. It also appears, however, that the lot is part of the principal residence of the debtors and therefore the holder of the lien, having only a lien against the lot which is part of the principal residence of the debtors, is entitled to the protections afforded by 11 U.S.C. '1322(b)(2).

The debtors have filed their first amended chapter 13 plan in this matter listing the value of the collateral held by Oakwood as $16,000 and propose to pay them that sum plus interest at the rate of 12% as part of the plan. In light of the Court=s conclusion above that the debtors may not modify the rights of Oakwood, it is hereby

ORDERED that the objection by Oakwood Acceptance Corporation to confirmation of debtors= plan herein, as amended, is SUSTAINED, and confirmation is hereby denied.