Now Updating
In re: JERSEY CITY COMMUNITY HOUSING CORP

Summarizing by Amir Shachmurove

Lira v. Wells Fargo Bank (In re Lira)

Citation:
Ninth Circuit Bankruptcy Appellate Panel Case No. CC-14-1338-DKiBr (August 4, 2015) - Not for Publication
Tag(s):
Ruling:
The Bankruptcy Appellate Panel affirmed the bankruptcy court's ruling. The bankruptcy court correctly determined that Wells Fargo, N.A. had standing and at least a colorable claim to foreclose on the real property pursuant to Sec. 362. Moreover, "in rem" stay relief is appropriate if: First, debtor’s bankruptcy filing must have been part of a scheme. Second, the object of the scheme must be to delay, hinder, or defraud creditors.11 Third, the scheme must involve either (a) the transfer of some interest in the real property without the secured creditor’s consent or court approval, or (b) multiple bankruptcy filings affecting the property.
Procedural context:
Melissa Rodriguez Lira ("Debtor") appeals the bankruptcy court’s order granting relief from stay, including an “in rem” provision under § 362(d)(4).
Facts:
The appeal relates to real property located in Rancho Cucamonga, California ("Property"). In 2006 Debtor's husband and father-in-law originally purchased the Property. The Property was encumbered by a Deed of Trust wherein if the borrower transferred the Property it was considered a default that the lender could accelerate the loan; however, there was an addendum to the Deed of Trust that allowed borrower to transfer interest in Property without lender's consent to transfer to immediate family members. Debtor's husband and father-in-law both filed Chapter 7 bankruptcy in 2009. In March 2012 Wells Fargo, N.A. ("Wells Fargo") by and through a corporate assignment recorded in April 2012 obtained the Trust Deed. In October 2012, Debtor's husband and father-in-law, transferred the Property to Debtor and Debtor's husband. Shortly thereafter, Debtor filed Chapter 13, it was dismissed for failure to file required document; therefore, Debtor filed a Chapter 7.
Judge(s):
Honorable DUNN, KIRSCHER and BRANDT,3 Bankruptcy Judges.

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