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October 21, 2011

E-Bulletin regarding a newly enacted California statute

October 20, 2011

Dear Insolvency Law Committee Constituency List members, please find
attached an E-Bulletin regarding a newly enacted California statute:

Governor Signs SB-4 (Calderon) Establishing New Requirements for Notices of
Trustee Sales

Most lenders with real property security in California foreclose by means of
nonjudicial foreclosure trustee's sales, rather than through
court-supervised judicial foreclosures. The first step in the nonjudicial
foreclosure process is to record and give a Notice of Default. The next
step, after the passage of at least three months, is to record and give a
Notice of Sale, giving at least 20 days' notice of the specified date, time
and place of sale.

Recent amendments to Civil Code section 2924f (2011, Chapter 229, S.B. 4,
approved by the Governor and filed with the Secretary of State on September
6, 2011), add three new requirements relating to the issuance of a Notice of
Sale. These requirements will become effective on April 1, 2012, and apply
only when the deed of trust or mortgage containing a power of sale is
secured by real property containing one to four single-family residences.

First, the Notice of Sale must contain a "Notice to Potential Bidders"
explaining some of the risks involved in bidding at the sale, including
that: (1) the successful bidder does not automatically receive free and
clear title to the property, (2) the lien being foreclosed may be a junior
lien, resulting in the successful bidder's title being subject to surviving
senior liens and the responsibility for paying off the senior liens before
obtaining clear title, (3) the bidder is encouraged to investigate the
condition of title to the property before bidding, and (4) the foreclosing
lender may hold more than one mortgage or deed of trust on the property.
The stated need for this requirement was to inform an increasing number of
unsophisticated bidders of the risks of bidding at a foreclosure sale.

Second, the Notice of Sale must contain a "Notice to Property Owners" to
better inform property owners about the foreclosure sale process and the
time at which ownership of the home is transferred to another party. This
notice explains that: (1) the sale date may be postponed one or more times
pursuant to Civil Code section 2924g, (2) the owner and the public can learn
of any rescheduling of the date and time for the sale by calling a telephone
number or visiting an internet website, and (3) the best way to verify
postponement information is to attend the scheduled sale.

Third, the statute requires a beneficiary, trustee, mortgagee or authorized
agent to make a good faith effort to provide up-to-date information, free of
charge, regarding sale dates and postponements, either by an internet
website, a telephone recording accessible 24 hours a day, seven days a week,
or through any other means that allows 24 hours a day, seven days a week, no
cost access to updated information.

These new requirements do not modify or create any substantive rights or
obligations for any person specified in either of the required notices, and
failure to comply with the new requirements will not invalidate any sale
that would otherwise be valid under Civil Code section 2924f. The
information provided in the required notices does not constitute the public
declaration of sale postponement required by subdivision (d) of Civil Code
section 2924g.

While the new amendments provide some helpful bidder caveats, they do not
obviate the need for a fully informed bidder to conduct additional pre-sale
due diligence and attend the sale with a clear bidding strategy in mind.

SB-4 may be viewed by clicking HERE
<http://info.sen.ca.gov/pub/11-12/bill/sen/sb_0001-0050/sb_4_bill_20110906_c
haptered.pdf>

These materials were prepared by John R. Engel, a shareholder at Sullivan,
Hill, Lewin, Rez & Engel, LLP, in San Diego, California.

Thank you for your continued support of the Committee.

Best regards,

Insolvency Law Committee

October 21, 2011 | Permalink | Comments (0) | TrackBack

October 20, 2011

US bankruptcy claims trading at year high in Sept

"The face value of U.S. bankruptcy claims traded in September was the highest since July 2010, according to a report released on Wednesday.

The value of claims traded in September doubled from August to $4.52 billion, according to SecondMarket, which runs a claims trading platform. The number of claims traded in September rose to 1,264 from 891 in August."

Read more here.

October 20, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

October 18, 2011

2011 Calvin Ashland Awards Dinner

November 3, 2011
Downtown Marriott
Reception and No-Host Bar at 6:00pm
Dinner and Awards Presentation at 7:00pm

Jazz Trio Featuring Bruce Campbell

Marriott Grand Ballroom
333 S. Figueroa Street
Los Angeles, CA 90071

-Your cdcbaa annual membership fee includes one free ticket to this dinner
-$95 for non-members and guests with RSVP and
payment received by 10/21/11
-$125 for non-members and guests with RSVP and
payment received after 10/21/11
-$150 at the door
-$75 Judicial Officers/Government Employees

To RSVP online, please visit our website at www.bklawyers.org
For your convenience you may select your entrée, register your guest,
select your guest’s entrée and remit payment online all at the same time!

For additional information, please contact cdcbaa Administrator Linda Righi at
cdcbaa@aol.com

October 18, 2011 | Permalink | Comments (0) | TrackBack

Delaware Bankruptcy Capital Status May End With Proposed Law

"A bipartisan bill sponsored by leaders of the House Judiciary Committee may strip Delaware of its status as the premier venue for U.S. bankruptcy cases, costing the state’s economy an estimated $100 million a year.

Lamar Smith, the Texas Republican who chairs the Judiciary panel, introduced the bill with Michigan’s John Conyers, its ranking Democrat. The aim is to prevent court-shopping and make companies reorganize at home 'to ensure maximum input from all affected stakeholders,' Smith said in a statement. Delaware’s Congressional delegation disagreed, citing the Wilmington-based court’s expertise.

'When someone has a specific medical problem, they go to a specialist,' Representative John Carney, a Democrat, said by e- mail. 'Delaware’s courts are our nation’s bankruptcy specialists.' The state’s two U.S. senators, Democrats Thomas Carper and Chris Coons, also oppose the bill.

Under the measure, a corporation may file for Chapter 11 reorganization only in the federal district where its principal place of business or assets are located.

The Chapter 11 Bankruptcy Venue Reform Act of 2011 would thus rule out most of the 90 public companies that since 2006 have sought protection from creditors in U.S. Bankruptcy Court in Wilmington, Delaware, where they are incorporated."

Read more here.

October 18, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

October 17, 2011

National Conference of Bankruptcy Judges

I just got back from NCBJ - Tampa, it was so much fun! I got to hear Supreme Court
Justice Elena Kagan speak on Saturday -- one of the most amazing experiences ever.
She has a great personality and is actually very funny.   

Here are the NCBJ locations for the next couple of years:

San Diego 10/24-27/2012
Atlanta 10/30-11/2/2013
Chicago 10/8-11/2014
Miami 9/27-30/2015
San Francisco 10/26-29/2016
Las Vegas 10/8-11/2017

-Roksana D. Moradi, Esq.

 

October 17, 2011 | Permalink | Comments (0) | TrackBack

Pennsylvania's Capital City Files for Bankruptcy

"Seeking to stave off a state takeover of its beleaguered budget, the city of Harrisburg, Pa., filed for a rare Chapter 9 municipal bankruptcy on Wednesday.

Harrisburg, the Pennsylvania capital that previously defaulted on its debt, cited a 'continued erosion of its finances,' in a resolution that was passed late Tuesday approving the bankruptcy."

Read more here.

October 17, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack

Palmeiro asks for time to sell Grapevine property in bankruptcy

"Former Texas Rangers star Rafael Palmeiro has asked creditors in his real estate bankruptcy case for five years to sell nearly 200 acres of land in Grapevine near Grapevine Mills mall."

Read more here.

October 17, 2011 in Current Affairs | Permalink | Comments (0) | TrackBack