Castro v. Kondaur Capital Corp. (In re Castro)
- Summarized by Steven Mulligan , Coan, Payton & Payne, LLC
- 12 years 1 month ago
- Citation:
- In re Castro, 2012 WL 5935957 (10th Cir. Nov. 28, 2012)
- Tag(s):
-
- Ruling:
- Appellant that was neither debtor nor creditor and had no interest in real property or, at best, such interest was subordinate, lacked standing to object to creditor’s motion for relief from stay, and sufficient evidence was produced showing creditor had colorable claim of a lien on property of the estate.
- Procedural context:
- The Bankruptcy Court granted a secured creditor’s motion for relief from the automatic stay to allow it to foreclose on debtors’ real property over the objection filed by debtors and an objection filed by a non-debtor third party. The 10th Cir. BAP affirmed the Bankruptcy Court’s decision and the debtors and non-debtor third party appealed.
- Facts:
- In state court, Appellant Lewis had been ordered to convey real property (the “Property”) to appellant George Castro and any interest that Lewis had in the Property was held to be subordinate to Appellee’s interest. Appellee moved for relief from stay under § 362(d) to foreclose. Debtors argued that Appellee was not the holder of the evidence of debt and could not seek relief from stay because the recorded notice and election and demand for the sale listed another bank as the holder of the owner of evidence of debt. A state court had previously found Appellee to be the successor in interest to the bank and Appellee also produced the assignment. Thus, Appellee satisfied the low threshold showing that it possessed a colorable claim of a lien on property of the estate.
- Judge(s):
- Lucero, Tymkovich, and Holmes
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