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Appeal of Order Granting Relief From Stay is Moot After Foreclosure Sale

By Karl Johnson posted 02-13-2019 11:42 AM

  
​BANKRUPTCY BULLETIN
Editors-in-Chief
Karl Johnson, Hellmuth & Johnson, PLLC
Jeffrey Klobucar, Bassford Remele, P.A.

 Contributing Editor: Mary Sieling, Manty & Associates, P.A.
BAP___Marshall_v__Deutsche_Bank_Natl_Trust_Co_.pdf

The bankruptcy court denied the debtor’s request to continue a hearing on Deutsche Bank’s motion for relief from the automatic stay and entered an order granting relief to the bank. The debtor timely appealed to the BAP, but failed to obtain a stay pending appeal.  Thereafter, the bank sold the subject real property at foreclosure sale and the debtor was evicted from the property.  The BAP ruled the appeal was moot due to the foreclosure sale, finding that the case “no longer presented an actual, ongoing case or controversy” and the BAP lacked jurisdiction to hear it.  Further, the BAP lacked the ability to give a remedy to the debtor because the property was sold to a bona fide third-party purchaser.  The appeal was dismissed for lack of jurisdiction.

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