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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>I agree with you. I never heard of a completed foreclosure being set aside a preference since it is involuntary transfer. I would continue with the foreclosure and forget the deed-in-lieu since you need to take out the subordinate lien holders anyways. Even though you are a secured creditor with a priority interest, I would avoid getting dragged into Bankruptcy court on this issue. If they file bankruptcy at this point in time you are still getting dragged in, but it should be less complicated to get a relief from stay and proceed with foreclosure.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>My two cents worth for a Friday.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal><span style='color:black'>Nestor Gorfinkel, Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Licensed in Washington & Florida<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Florida Civil-Law (International) Notary<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;color:black'>ATTENTION - This e-mail message and any attachment to this e-mail message may contain confidential information that is legally privileged. If you are not the intended recipient, you must not review, retransmit, convert to hard copy, copy, use or disseminate this e-mail or any attachments to it. If you have received this e-mail in error, please notify us immediately by return e-mail or by telephone at the phone numbers provided herein and delete this message. Please note that if this e-mail message contains a forwarded message or is a reply to a prior message, some or all of the contents of this message or any attachments may not have been produced by the sender.<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt;color:black'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:24.0pt;font-family:Webdings;color:#009900'>P</span></b><b><span style='font-size:24.0pt;color:#009900'> </span></b><b><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#009900'>Please consider the environment before printing this e-mail.</span></b><span style='font-family:"Century Schoolbook",serif;color:black'><o:p></o:p></span></p></div><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Paul Neumiller<br><b>Sent:</b> Friday, February 23, 2018 1:10 PM<br><b>To:</b> wsbarp@lists.wsbarppt.com<br><b>Subject:</b> [WSBARP] Bankruptcy Gurus<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoPlainText>Hey Everybody And Happy Friday. Please bear with me on this set of facts. I am working with a non-profit that sells housing to low-income people with seller financing. Buyer/Debtor is now in default and there are multiple junior liens to the non-profit's deed of trust amounting to about $100k. Debtor, who is represented by a legal aid society type attorney, is willing to sign a deed-in-lieu agreement giving the residence back to the non-profit so the non-profit can fix it up and get another deserving family into the residence. (My deed-in-lieu contains non-merger language so that Creditor can continue with the foreclosure process to foreclose out the junior lienholders.) Here's the problem, Debtor's attorney tells me that Debtor wants to declare bankruptcy once the "foreclosure procedure is completed." <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>OK, it seems to me that the non-profit should NOT accept the deed-in-lieu now because it could be set aside as a preferential payment or transaction in the bankruptcy court. The only reason that the non-profit would accept the deed-in-lieu is to get early possession of the residence so the non-profit can start to repair it and fix it up. It seems to me that, since the non-profit needs go the full foreclosure route <i>anyway</i> in order to eliminate the junior lienholders, then the non-profit should not accept the deed-in-lieu and avoid the specter of being set aside as a preference. The non-profit wouldn’t get the property early but it may be a "cleaner" transaction. Is this sound reasoning?? Can a fully completed foreclosure get set aside as a preference? Thanks for your help and drive carefully out there.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>-Paul Neumiller <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText><o:p> </o:p></p></div></body></html>