Appeal from the United States Bankruptcy Court for the Eastern District of California Honorable Ronald H. Sargis, Bankruptcy Judge, Presiding Bk. No. EC-10-37534-RHS
U.S. BKCY. APP. PANEL OF THE NINTH CIRCUIT
Argued and Submitted on February 17, 2011
at Sacramento, California
Before: KIRSCHER, DUNN, and HOLLOWELL, Bankruptcy Judges.
Although it may be cited for whatever persuasive value it may have (see Fed. R. App. P. 32.1), it has no precedential value. See 28 9th Cir. BAP Rule 8013-1.
Appellant, chapter 13*fn2 debtor Syreeta D. Corbitt ("Corbitt"), appeals an order from the bankruptcy court granting relief from the automatic stay to appellee, Aurora Loan Services, LLC ("Aurora"), to proceed with its unlawful detainer action against Corbitt in state court. Because the bankruptcy court did not abuse its discretion in lifting the stay, we AFFIRM.
I. FACTS AND PROCEDURAL BACKGROUND
A. Prepetition Events.*fn3
In November 2005, Corbitt obtained a loan for $557,100 from Universal American Mortgage Company ("Universal") to purchase a home in Vallejo, California (the "Property"). In exchange for the loan, Corbitt executed a note, which was secured by a first deed of trust on the Property in favor of Universal. Sometime thereafter, Corbitt obtained a second loan on the Property from Ocwen Loan Servicing ("Ocwen") for $137,000. In or around early 2006, Universal sold Corbitt's loan to Aurora. Corbitt kept the Aurora loan current until April 2008. Corbitt admittedly stopped making payments to Aurora after August 2008. Corbitt's payment history to Ocwen is unknown.
A Notice of Default was recorded against the Property on August 15, 2008, in Solano County, California. Aurora was the successful bidder at a non-judicial foreclosure sale on the Property on December 11, 2008, paying $303,160 for it. By that time, Corbitt owed approximately $587,000 on the Aurora loan. According to a 1099-A Form (Acquisition or Abandonment of Secured Property) Aurora sent to Corbitt, as of December 11, 2008, the Property had a fair market value of $167,200. Aurora recorded its Trustee's Deed in Solano County on December 19, 2008.
Aurora filed an unlawful detainer complaint ("First UD Action") against Corbitt in Solano County Superior Court ("State Court") in January 2009, commencing Aurora Loan Services, LLC v. Corbitt, Case No. VCM104344. For reasons not entirely clear from this record, the First UD Action was dismissed with prejudice on November 13, 2009. On December 8, 2009, Aurora moved to set aside dismissal of the First UD Action, which the State Court denied on or around December 21, 2009.
Meanwhile, on April 17, 2009, Corbitt filed suit against Aurora (and others) in State Court for wrongful foreclosure, commencing Corbitt v. Aurora Loan Services, LLC et al., Case No. FCS033344. After the filing of numerous motions, the State Court dismissed Corbitt's wrongful ...