Deutsche Bank National Trust Co. v. Porovne (In Re Porovne)

436 B.R. 791, 2010 WL 3833657
CourtUnited States Bankruptcy Court, W.D. Pennsylvania
DecidedSeptember 27, 2010
Docket19-02035
StatusPublished
Cited by3 cases

This text of 436 B.R. 791 (Deutsche Bank National Trust Co. v. Porovne (In Re Porovne)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deutsche Bank National Trust Co. v. Porovne (In Re Porovne), 436 B.R. 791, 2010 WL 3833657 (Pa. 2010).

Opinion

MEMORANDUM OPINION

THOMAS P. AGRESTI, Chief Judge.

Currently before the Court is a Motion for Summary Judgment (“S/J Motion”) filed by Deutsche Bank National Trust Company as Trustee at Adv. No. 09-2545, Document No. 4, by its attorney in fact Ocwen Loan Servicing LLC (“Ocwen”). The S/J Motion is in reference to the Complaint filed in the within adversary at Document No. 1 by the Debtor, Elaine A. Porovne, in which she seeks to set aside a sheriff sale of her residence. 1 Also pending is a Motion for Relief from the Automatic Stay filed by Ocwen at Document No. 53 (“Stay Motion”) in the main bankruptcy case.

In her Complaint, the Debtor seeks to set aside the sheriffs sale of her real property that was completed prior to the bankruptcy filing while, in the Stay Motion, Ocwen simultaneously seeks relief from stay to complete its state court foreclosure proceeding by prosecuting a state court action in ejectment. For the reasons which follow, the Complaint will be dismissed and the Stay Motion will be granted.

PROCEDURAL AND FACTUAL BACKGROUND

The underlying facts are not in dispute and are readily ascertainable from the Court’s docket in this case, the docket from the Debtor’s prior bankruptcy, Case No. 05-27139-TPA (“2005 Case”), and, from the Stipulation of Facts filed by the Parties in the Adversary Proceeding at Document No. 19. 2 This record demonstrates a longstanding controversy between the Debtor and Ocwen, a recitation of which, is necessary for the Court’s decision.

On October 21, 2001, the Debtor obtained a loan from Ocwen secured by a mortgage on her residence, real property known as 428 W. Railroad Street, Verona, PA. (“Property”). On October 14, 2004, the Debtor defaulted on her payments and Ocwen instituted foreclosure proceedings and obtained a default judgment. A sheriffs sale of the Property was set for June 6, 2005. Four days prior to the scheduled sheriffs sale, however, the Debtor filed for relief under Chapter 13 of the Bankruptcy Code (“2005 Case”). 3

*795 At the time of filing the 2005 Case, the Debtor owed Ocwen an arrearage claim in the amount of $17,838. The Debtor filed a Chapter 13 Plan which was designed to cure the arrearage and reinstate Ocwen’s mortgage. By Order dated November 9, 2005, the Plan was confirmed.

The Debtor quickly fell into default on her Plan payments as a result of which the Chapter 13 Trustee moved to dismiss. At about the same time, Ocwen filed a Motion for Relief from the Automatic Stay due to the Debtor’s failure to make her required payments. Ocwen’s Motion was granted on May 19, 2006, but relief was stayed for 21 days to give the Debtor a chance to bring her plan payments current. See 2005 Case at Document No. 43.

On June 14, 2006, Ocwen filed a Certification of Default indicating that the Debt- or had not brought the Plan current and by Order dated June 16, 2006, was granted unqualified relief from the automatic stay as previously authorized by the May 19, 2006 Order. Id. at Document No. 47.

The Debtor then made some payments to the Chapter 13 Trustee and on August 23, 2006, filed a Motion to Reinstate the Automatic Stay. Id. at Document No. 50. On October 4, 2006, an order was entered which provided that “the automatic stay is reinstated temporarily to stop any currently pending Sheriff Sale for the month of October, 2006.” Id. at Document No. 55. Prior to entry of this order, on October 2, 2006, Ocwen had proceeded to conclusion with a sheriffs sale of the Property in the pending state foreclosure action. This prompted the Debtor to file an Emergency Motion to Set Aside the Sheriff Sale on October 17, 2006. The Emergency Motion was resolved by a stipulated order dated October 31, 2006, the content of which was ostensibly negotiated and agreed upon by both Ocwen and the Debtor and her attorney, Id. at Document No. 70 (“Consent Order”). The Consent Order provided, in relevant part, as follows:

1. That the Sheriff Sale of the Property ... is hereby SET ASIDE and VACATED pursuant to the terms of this ORDER. The Sheriff shall take appropriate steps to VOID the sale and reschedule the Sheriff Sale in accordance with paragraph 2 of this Order.
2. The Sheriff Sale conducted on October 2, 2006 shall be rescheduled to the regularly scheduled January, 2007 Sheriff sale date for Allegheny County without the need for any further notice and/or advertising. Further, Ocwen may adjourn the Sheriffs Sale of the Property, scheduled for the regularly conducted January, 2007 Sheriff Sale in accordance with this Order, from month to month or such other longer period of time as Ocwen may request from the Sheriff of Allegheny County, without the need for further advertising and/or notice an unlimited number of times during the pendency of the instant Bankruptcy Case (until such time as the Bankruptcy case is dismissed and/or terminated — which may be shown by a copy of the docket report). The Sheriff shall announce each such adjournment in accordance with its normal policies and procedures. 1 (emphasis added)
6. In the event Debtor fails to make any of the payments set forth herein above (or fails to maintain insurance on the Property) on or before their due dates, Ocwen shall give Debtor and Debtor’s counsel notice of the default and if such default is not cured within *796 ten (10) days of said notice, upon certification to the court of such default, and request for Order, with a copy to Debtor and Debtor’s counsel, Ocwen shall immediately have relief from the bankruptcy stay....
11. It is understood by and between the parties that this filing represents Debtor’s last opportunity in Bankruptcy to save the Property from foreclosure .
1. This provision is intended to allow Ocwen to maintain the Property on the Sheriff Sale list such that if the Debtor defaults it may immediately proceed to sell the property upon entry of relief from the automatic stay or dismissal/ termination of the bankmptcy proceeding. (emphasis added)

Id. at Document No. 70.

On March 17, 2009, the Chapter 13 Trustee filed another Certificate of Default seeking dismissal of the 2005 Case for failure of the Debtor to make Plan payments. The next day, Ocwen, pursuant to the terms of the Consent Order, filed a

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Cite This Page — Counsel Stack

Bluebook (online)
436 B.R. 791, 2010 WL 3833657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deutsche-bank-national-trust-co-v-porovne-in-re-porovne-pawb-2010.