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Financial Services Litigation Bulletin - October 2011
Foreclosing Lenders Beware

10/03/2011

Foreclosing Lenders Beware

By Mike Reynolds

A new decision from recently-appointed bankruptcy judge Mark S. Wallace should be of serious concern to lenders foreclosing non-judicially. Judge Wallace, who sits in the Santa Ana division of the U.S. Bankruptcy Court for the Central District of California, ruled that a pre-petition trustee's sale can be voided by a bankruptcy filed before the execution of the trustee's deed upon sale. The case, In re Gonzalez, 201 Bank.LEXIS 2892, was decided in August 2011.

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