Purchaser at Foreclosure Sale Not Entitled To Relief From Section 362 Automatic Stay

The U.S. Bankruptcy Court for the Central District of California Aug. 1 held that “cause” did not exist as would warrant granting a purchaser at a nonjudicial foreclosure sale relief from the automatic stay under Bankruptcy Code Sections 362(d)(1) and (d)(4) to commence an unlawful detainer proceeding against the debtor because the purchaser had neither legal nor equitable title to the property and could not prevail in such an action under California law (In re Gonzalez).

Judge Mark S. Wallace concluded that because the deed for the debtor’s property was executed post-petition, it is void, and because it ...