4001.a.3 Waiving the 14 day period after relief from stay....

[DHernandez]

Hi all, looking for some last minute help. We are helping a homeowner refinance one of their investment properties in San Diego, California.

Some background:
1. She is currently in Ch 7, but should be dismissed (not discharged) any day. We have everything done with loan (appraisal, apps, etc) and are awaiting for dismissal to go to loan docs.
2. The lender on the investment property filed for relief from automatic stay and got it granted on Feb 20th. The lender currently has sale date set for tomorrow, 2/22
3. The homeowner's BK attorney was more focused on getting everything filed to get the dismissal. They did not answer the Motion for Relief from stay. Their thought process was that it was more important to get the dismissal. And they said there would be a 14 day period after the relief from stay was granted. Which they said would provide time to get the loan funded.
4. The order granting relief, however, states that the 14 day period in 4001 (a) (3) is waived. So their BK attorney sort of dropped the ball on this one.

Aside from the standard recommendations (beg investor and trustee for an extension), is there any action the homeowner can file with the BK court to challenge the 14 day period being waived?

Thanks for assistance

[justbroke]

If you're the new lender, go buy the property at foreclosure.

As for challenging the 14 day period since the case is being dismissed, it is probably moot. The 14 day requirement is discretionary for the Judge. The judge, in this case, felt it was unnecessary. Remember, the attorney did not even answer the motion for relief from stay. Unless the attorney somehow files a motion to vacate or amend the order granting the relief, this is all done.

Even if the case was dismissed, the lender would not be bound by the automatic stay AND if the debtor re-filed, the automatic stay would not affect the lender since they were already relieved. This is specifically to prevent serial filings.

I don't even know why anyone would be lending money to someone in the middle of a Chapter 7, unless this is hard money. In either case, if the investment is very good, then why not just purchase the property at foreclosure?