In re Jacarae Lea Fairbanks
- Case Type:
- Consumer
- Case Status:
- Affirmed in part and Reversed in part
- Citation:
- Bankruptcy Appellate Panel of the Ninth Circuit No. WW-21-1019-FBS (9th Circuit, Aug 12,2021) Not Published
- Tag(s):
-
- Ruling:
- The BAP affirmed the bankruptcy court's ruling that the Debtor held legal title to the Property on the Petition Date, the deed recording violated the automatic stay, the denial of the stay annulment. The BAP vacated and remanded the bankruptcy court's decision to no consider other stay relief.
- Procedural context:
- The Debtor filed a Chapter 13 bankruptcy and sought to recover the Property sold by nonjudicial foreclosure.
The Bank filed motion seeking a modification of the automatic stay either to annul the stay retroactive to the petition date, validation of the acts which the Bank argued to be ministerial, or prospective relief to give the Bank a do over.
The bankruptcy court determined the postpetition execution, delivery, and recording of the Foreclosure Trustee's deed violated the automatic stay. The bankruptcy court denied the Bank's request for an annulment of the automatic stay retroactive to the Petition Date, and the bankruptcy court also denied the Bank's request to validate, ratify, or redo such acts.
The Bank appealed.
- Facts:
- The Debtor owned a home for which she executed a deed of trust in 2006 (Property). The Debtor fell behind in payments on the Property in 2015. She unsuccessfully sought a loan modification. At the start of the pandemic the Debtor received information from Home Matters, USA that she would not be placed into foreclosure, and that Home Matters, USA would handle everything. This did not occur.
The Bank sold the Property at a nonjudicial foreclosure auction under Washington State law.
The Debtor filed Chapter 13 bankruptcy before the Foreclosure Trustee completed all of the steps to deliver clear title to the purchaser of the Property under Washington State law.
- Judge(s):
- The Hons. Faris, Brand, and Spraker
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