3125 Old Conejo Road
Thousand Oaks, CA 91320
(805) 230-2525Posted on: March 17, 2014
We represented an investor who purchased real property at a foreclosure Trustee Sale on the same day that the property owner filed for Bankruptcy, without notice of the bankruptcy filing, which was not recorded. A few days later, our client recorded the Trustee’s Deed Upon Sale thereby perfecting title back to 8:00 a.m., the day of the sale.
Three months after the sale, the foreclosing lender first learned of the bankruptcy filing and recorded a Notice of Rescission of the Trustee’s Deed. We filed suit to quiet title and brought a motion in Bankruptcy Court for orders that the automatic stay was void from the beginning – the order was granted. With the Bankruptcy orders removing any threat of violation of the automatic stay, the foreclosing lender reissued a new Trustee’s Deed Upon Sale to our client, which cleared title so that our client could sell the property.
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