In re Connors

Posted August 3, 2007Published and Representative Opinions

In re Connors, 497 F3d 314 (3d Cir. 2007): In Connors, David Kessler & Associates represented the successful third party bidder at Sheriff’s sale. After the sale, the homeowner filed a bankruptcy petition. David Kessler & Associates filed a motion to lift the bankruptcy stay and allow the Sheriff’s Deed to be delivered. The debtor opposed the motion, seeking to “cure” the mortgage default. The Bankruptcy Court granted David Kessler & Associates’ motion and the debtor appealed to the United States District Court. The District Court affirmed and the debtor appealed to the United States Court of Appeals. The Court of Appeals followed the “Gavel Rule”, holding that a homeowner cannot cure a mortgage default beyond the day of the foreclosure sale. As a result, the third party bidder received the Sheriff’s Deed.