Underwriters asking for "order for abandonment" when
Posted: Thu Mar 24, 2011 1:44 pm
charset="windows-1251"
Eric is correct. Permission to foreclose, i.e. relief from stay, is NOT the
same thing as removing property from the estate. Please see 554 on
removing property from the estate. A no asset report is also NOT
sufficient. It must either be an Order closing the case or an Order
authorizing abandonment.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
mitnicklaw@aol.com
Sent: Thursday, March 24, 2011 1:33 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Underwriters asking for "order for abandonment" when
lender alre...
In a message dated 3/24/2011 1:27:48 PM Pacific Daylight Time,
hollyroark22@gmail.com writes:
I have had calls from debtors who are doing short sales where an underwriter
is insisting on having an "order for abandonment" when the lender already
obtained relief from stay to foreclose. Doesn't the relief from stay order
(where the trustee has an opportunity to oppose but does not) effectively
"abandon" the property and take it out of the estate? Am I missing
something? Do you also need an "order for abandonment" in order for the
debtor to sell the property?
Holly Roark
holly@roarklawoffices.com
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
Holly- relief from stay does not remove the property from the estate. Some
title companies are more picky than others on this issue. If there is a
report of no distribution that might suffice. Otherwise, you will have to
do a motion, which is very simple. Some trustees will also stipulate to
abandonment.
Eric
Law Office of Eric Alan Mitnick
21515 Hawthorne Boulevard, Suite 1080
Torrance, CA 90503
(310) 792-5864; 792-5866 (fax)
MitnickLaw@aol.com
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Message
Eric is correct.
Permission to foreclose, i.e. relief from stay, is NOT the same thing as
removing property from the estate. Please see 554 on removing property
from the estate. A no asset report is also NOT sufficient. It must
either be an Order closing the case or an Order authorizing
abandonment.
David A.
Tilem
Certified Bankruptcy
Specialist*
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