Foreclosure / BK Automatic Stay

[Matt Pfefferlen]

I am interested in buying a foreclosure at auction which has been postponed a few days due to BK.   The homeowner has a case open still, but the automatic stay was lifted on a motion by the bank.  Additionally, the homeowner filed another BK a few days before the auction.  Does the homeowner get the automatic stay protection again on this new filing?

[Darius Ogloza]

A careful attorney for the bank will likely seek clarification from the court that the new filing does not defeat the previously granted motion to lift the stay before acting on these facts.  The penalties for violating the stay - even inadvertently - could be pretty harsh.  My hunch - without all of the facts - is that this will likely cause a short delay.  Personal Chapters 11 and 13 are not so different as to require a full out re-litigation of the motion (in any event, secured lenders almost always win these).