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BoA foreclosure Claim
I'm not sure about the one action rule--my understanding is that
nonjudicial foreclosure does not constitute an "action" for purposes of the
one action rule. But I think you may be right regarding the bankruptcy
discharge. Debtor's personal liability was discharged in the bankruptcy
case. B of A may have made a mistake in releasing the lien, but now that
they have released it, they have exhausted their collateral. Since debtor
received a discharge, I don't see how B of A can try to collect from debtor
without violating the discharge injunction.
On Tue, May 7, 2013 at 9:08 AM, Larry Webb wrote:
> **
>
>
> Client files a no asset ch7, receives discharge and case is dismissed.
> Several months later his home is sold in foreclosure. The first is paid
> and BoA submits a claim on their second to the sale trustee for $260,000.
> BoA of is paid the $260K and the trustee has a surplus of $100K which goes
> to the client. Client had no idea he was going to get anything before the
> check showed up in the mail. Several months go by and BoA discovers> their claim should have been $360K; they have contacted the client asking
> him to call and discuss. Client called me. ****
>
> ** **
>
> I believe that in addition to the Bankruptcy discharge, California CCP
> s726 (one action rule) bars BoA from trying to collect the $100K. I also
> dont believe the Sale Trustee is responsible for correcting BoAs
> mistake. As I see it BoA made a claim for settlement of their loan, got
> paid and they are finished. Does anyone see it differently?****
>
> ** **
>
> Best Regards****
>
> ** **
>
> ** **
>
> Larry Webb****
>
> Law Office of Larry Webb****
>
> 484 Mobil Ste 43****
>
> Camarillo, Ca 93010****
>
> 805-987-1400****
>
> Email Larry@webbklaw.com****
>
> ** **
>
> ** **
>
>
>
Clifford Bordeaux
Bordeaux Law, P.C.
790 E. Colorado Boulevard, 9th Floor
Pasadena, CA 91101
T: 626-405-2345 / F: 626-4-628-1820 E: cliff@bordeauxlaw.com
I'm not sure about the one action rule--my understanding is that nonjudicial foreclosure does not constitute an "action" for purposes of the one action rule. But I think you may be right regarding the bankruptcy discharge. Debtor's personal liability was discharged in the bankruptcy case. B of A may have made a mistake in releasing the lien, but now that they have released it, they have exhausted their collateral. Since debtor received a discharge, I don't see how B of A can try to collect from debtor without violating the discharge injunction.
On Tue, May 7, 2013 at 9:08 AM, Larry Webb <larry@webbklaw.com> wrote:
Client files a no asset ch7, receives discharge and case is dismissed. Several months later his home is sold in foreclosure. The first is paid and BoA submits a claim on their second to the sale trustee for $260,000. BoA of is paid the $260K and the trustee has a surplus of $100K which goes to the client. Client had no idea he was going to get anything before the check showed up in the mail. Several months go by and BoA discovers that their claim should have been $360K; they have contacted the client asking him to call and discuss. Client called me.
I believe that in addition to the Bankruptcy discharge, California CCP s726 (one action rule) bars BoA from trying to collect the $100K. I also dont believe the Sale Trustee is responsible for correcting BoAs mistake. As I see it BoA made a claim for settlement of their loan, got paid and they are finished. Does anyone see it differently?
Best Regards
Law Office of Larry Webb484 Mobil Ste 43Camarillo, Ca 93010805-987-1400
The post was migrated from Yahoo.
Client files a no asset ch7, receives discharge and case is dismissed.
Several months later his home is sold in foreclosure. The first is paid and
BoA submits a claim on their second to the sale trustee for $260,000. BoA
of is paid the $260K and the trustee has a surplus of $100K which goes to
the client. Client had no idea he was going to get anything before the
check showed up in the mail. Several months go by and BoA "discovers" that
their claim should have been $360K; they have contacted the client asking
him to call and discuss. Client called me.
I believe that in addition to the Bankruptcy discharge, California CCP s726
(one action rule) bars BoA from trying to collect the $100K. I also don't
believe the Sale Trustee is responsible for correcting BoA's mistake. As I
see it BoA made a claim for settlement of their loan, got paid and they are
finished. Does anyone see it differently?
Best Regards
Larry Webb
Law Office of Larry Webb
484 Mobil Ste 43
Camarillo, Ca 93010
805-987-1400
Email Larry@webbklaw.com
The post was migrated from Yahoo.