Case Study: In Re Ebadi

Law360, New York (July 29, 2011, 5:31 PM EDT) -- In a case of first impression, the Bankruptcy Court for the Eastern District of New York recently held that a mortgage lender's foreclosure sale was a violation of the automatic stay when the lender obtained its foreclosure judgment prepetition and the debtor was not an owner of the mortgaged property.

While this decision was filed several months ago, there has been little discussion about its implications. But the case is noteworthy because it is a gotcha, as evidenced by the court's decision not to award punitive...
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