< Back To Index 07.10.2009 - FRLP

The Foreclosure Relief Law Project has offered its comments related to Proposed new Local Rule 4001-1 and Form 4001-1 in United States Bankruptcy Court, District of Minnesota.

Background:  In Spring 2009, FRLP began representation of an individual homeowner who also filed for bankruptcy.  One of the advantages of bankruptcy is that there is an automatic stay of any foreclosure proceedings.  Lenders, however, often attempt to lift that stay and their actions are generally unopposed.  FRLP challenged a lender's attempt to lift a stay to proceed with foreclosure of our client, raising the issue of whether the lender could prove ownership of the loan.  Apparently this was the first time this issue had been raised in bankruptcy court in Minnesota.  Ultimately the court allowed the foreclosure to proceed, without determining ownership, but also proposed new statewide rules requiring lenders to demonstrate they own the loan.

To read FRLP's Comments on the Proposed Rule, click here.