2nd Circle Finds Foreclosure Sale Breached Bankruptcy Stay

By Rick Archer (July 7, 2022, 7:36 p.m. EDT) – The Second Circuit found that a bankruptcy occupant of a Long Island property should have stopped its foreclosure sale despite not directly owning the title, since she had been named in the foreclosure proceedings.

In what it said was a matter of first impression, the panel issued an opinion on Wednesday saying Bayview Loan Servicing breached the automatic bankruptcy stay when it proceeded to sell the property despite being notified of the filing. of Chapter 7 by Eileen Fogarty, claiming that Bayview’s arguments regarding why Fogarty was named in the foreclosure proceedings failed in the face of…

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