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Debtor Has No Interest In Property After Foreclosure Sale and Ratification

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Singh v. Shao Lin Lai, 2019 WL 4750420 (D.Md. 2019)(Hazel, J.)

Property was foreclosed on and sold in February of 2017 and was ratified on July 25, 2017 by Montgomery County Circuit Court. On September 28, 2018, the Debtor filed this present bankruptcy case. The purchasers of the property filed a Motion to Confirm Termination or Absence of the Automatic Stay with respect to the Property which the Bankruptcy Court granted holding that the bankruptcy estate had no recognizable interest in the property.

Under Maryland law, the Debtors’ interest in the property was terminated, as has the right to redeem the property by repaying the mortgage debt. No interest in the property is contained in the bankruptcy estate, which was filed more than a year after the ratification of the foreclosure sale. The Bankruptcy Court was therefore correct to find that Appellant “does not have equity” in the Property under 11 U.S.C. §362(d)(2)(A).

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