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Underwriters asking for "order for abandonment" when lender already obtained relief from stay - am I missing something?
Yes. Relief from stay gives creditor the right to foreclose. If creditor forecloses, the property leaves the estate. Otherwise remains in the estate and you need a motion to abandon, or a motion allowing refinance to sell or refinance.
Sent from my iPhone
On Mar 24, 2011, at 4:27 PM, Holly Roark wrote:
> Authority for those who answered that the stay lift does not equal abandonment, at least for the 9th Circuit: Catalano v. CIR, 279 F.3d 682 (9th Cir. 2002) (lifting stay did not effect abandonment of estate's interest in debtor's residence; procedures under 554 must be followed).
>
> Holly Roark
>
> On Thu, Mar 24, 2011 at 1:27 PM, Holly Roark wrote:
> 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 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
>
>
Yes. Relief from stay gives creditor the right to foreclose. If creditor forecloses, the property leaves the estate. Otherwise remains in the estate and you need a motion to abandon, or a motion allowing refinance to sell or refinance.Sent from my iPhoneOn Mar 24, 2011, at 4:27 PM, Holly Roark <hollyroark22@gmail.com> wrote:
Authority for those who answered that the stay lift does not equal abandonment, at least for the 9th Circuit: Catalano v. CIR, 279 F.3d 682 (9th Cir. 2002) (lifting stay did not effect abandonment of estate's interest in debtor's residence; procedures under 554 must be followed).
Holly Roark
On Thu, Mar 24, 2011 at 1:27 PM, Holly Roark <hollyroark22@gmail.com> wrote:
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?
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Holly Roark
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