Legal Question in Bankruptcy in California

Trustee sale without notice and without changing title

I filed for Chapter 7 on January 1998. After Chapter 7 was discharged on May, 1998 I filed for Chapter 13.

The same mortgage company was the first lien holder on both of my properties conducted a trustee's sale on July 1998, on my rental property. A third party bought the house at the sale and transfered title to his name.

After I filed an advesary proceeding, the court ruled the trustee's sale void and ordered the mortgage company to reinstate title to pre trustee's sale condition. The court also ordered the same mortgage company ''not to conduct any trustee's sale as long as I make $1,000 each month''. I made payment until 1/2000.

The motgage company conducted a second trustee's sale on 2/1/2000 without giving me any notice of the pending trustee's sale and without changing title on the property.

Question: can the mortgage company conduct a trustee's sale without giving me any notice of the pending trustee's sale and without changing title on the said property? What are my legal rights in recovering my properties and any possible compensatory and punitive damages for the loss of income from said property.

Debtor


Asked on 10/30/00, 10:38 pm

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Trustee sale without notice and without changing title

It sounds to me like what the court issued was an adequate protection order. Usually this is done by granting relief from the automatic stay, but not allowing it to be effective as long as payments are made. Usually the order will require the creditor to file a declaration re: no payment received, before proceeding with the foreclosure sale, but I would have to see the court order to tell you for sure.

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Answered on 11/16/00, 6:59 pm


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