In re: Jackson

In 2014, Jackson filed a Chapter 7 Bankruptcy petition. His mortgagee (BOA), sought relief from the stay; abandonment of his residence, a condominium; and in rem relief for two years under 11 U.S.C. 362(d)(4)(B), alleging a substantial arrearage and prior bankruptcy filings that included the Condominium as scheduled property. The court granted the motion. BOA and Jackson entered into a loan modification agreement. The owners’ association (Carlton House) sought a permanent in rem order. The court stated that post-petition amounts were current “and the issue seems to be the desire to move forward with the foreclosure for the outstanding [pre-petition] approximately $5,900.” The court entered a two-year in rem sanction. Jackson received his discharge; the case was closed. Carlton House immediately went to state court to schedule a sheriff’s sale--the final step in a foreclosure action commenced in 2008 by BOA’s predecessor. Carlton House and the lender had obtained a foreclosure decree in 2009. The bankruptcy court reopened the case, concluded that Carlton House violated discharge order by scheduling the sale, awarded monetary sanctions, and enjoined re-scheduling of the sale. The Sixth Circuit Bankruptcy Appellate Panel reversed, noting that Carlton House has statutory obligations to other unit owners. The bankruptcy court effectively imposed an “equity requirement” that is not part of the Ohio foreclosure sale process. View "In re: Jackson" on Justia Law