Rescheduled Foreclosure Sales: Enough Is Enough!!

13 Apr Rescheduled Foreclosure Sales: Enough Is Enough!!

How many times may a foreclosing mortgagee reschedule the sale after a bankruptcy is filed? In Massachusetts, maybe once is enough.

It has been the accepted custom to allow one rescheduled sale, to preserve the status quo in case a bankruptcy filing is quickly dismissed. But Judge Joel B. Rosenthal’s eyebrows were raised at allegations of numerous reschedulings, so he issued adistrict-wide order to show cause why the reschedulings were not violations of the automatic stay. He then refused to suspend execution of his order despite a pending appeal.In re Soderman, 2008 Bankr. LEXIS 384 (Bankr. D. Mass., 2008).

The Soderman test for a stay violation is whether the sale was postponed to harass the debtor, gain an advantage for the creditor, or revive the financial pressures which drove the debtor into bankruptcy in the first place.

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L. Jed Berliner practices exclusively in consumer bankruptcy, foreclosure defense, and related consumer protection litigation such as credit card defenses and suing debt collectors. He established his Springfield, MA practice in 1988. Attorney Berliner is a regular and active contributor to the Bankruptcy Law Network, the Bankruptcy Roundtable, and the National Association of Consumer Bankruptcy Attorneys, three specialized consumer bankruptcy forums on the Internet, and is an informal mentor to regional practitioners. He is recognized by his peers as an expert in consumer bankruptcy issues. He thoroughly enjoys being rated "excellent" in his client surveys.

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