Q: Can A Mortgage Company Receive A Termination of Stay After The Bankruptcy Trustee Has Obtained a Ruling For Sale of Real Estate?
The Trustee (chapter 7) has received approval from the presiding judge to sell real property. The property was then listed as a short sale. An offer came in and was accepted by the second lender. The first lender apparently receives 100% with no need to negotiate. Now that same first lender has entered a motion to terminate the stay and proceed with foreclosure?
A closing date has been set, if the first lender obtains approval to terminate the stay and proceed with foreclosure (why would they???) how will this affect the sale?