Now Updating
The Security National Bank of Sioux City, IA v. Vera T. Welte Testamentary Trust

Summarizing by Amir Shachmurove


Case Type:
Case Status:
21-4050 (10th Circuit, May 27,2022) Not Published
Limning factors relevant to a decision to reopen or reconsider, the U.S. Court of Appeals for the Tenth Circuit (Circuit) affirmed the orders, issued by the U.S. Bankruptcy Court for the District of Utah (BC) and affirmed by the U.S. District Court for that same district (DC), denying the motions to reopen and to reconsider that denial filed by Charles and Ethanne Waldo (DRs) in the wake of their fruitless attempt to prevent foreclosure proceedings that, though halted by their bankruptcy filing, recommenced once the BC granted the motion for summary judgment of mortgage holder and servicer.
Procedural context:
After the DRs turned to the Code for relief from pending foreclosure proceedings, the Bank of New York Mellon Trust Company, NA, as Indenture Trustee for the IMC Home Equity Loan Owner Trust 1998-7, and Ocwen Loan Servicing, LLC (together, Creditors), filed a proof of claim in their joint bankruptcy case. While the DRs objected, they did not deny the arrears; instead, they questioned whether the Creditors could enforce the debt. The BC overruled their objection, granting the motion for summary judgment that the Creditors had tendered and the parties had argued before it. Afterwards, the DRs moved to reopen the matter. Once more, the DRs maintained that the Creditors had no right to enforce the debt and questioned the proof of claim, insisting that the mortgage contract was no longer valid, Ocwen no longer serviced the loan, and the bank entity (that filed the proof of claim) no longer existed. The BC rebuffed their request. In response, the DRs asked the BC to reconsider this decision. Treating this followup request as a motion to alter or amend a judgment, the BC denied relief.
Prepetition, the DRs obtained a mortgage, which was secured by a deed of trust. The DRs eventually defaulted on the loan, triggering foreclosure proceedings. The DRs responded by docketing a joint petition for relief under the Code.
Robert E. Bacharach; Allison H. Eid; and Veronica S. Rossman

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