Opinion
Case No. 11-66227
02-25-2015
In re: Frank P. Camaj and Pashka Camaj, Debtors.
Chapter 7 ORDER OVERRULING DEBTOR'S OBJECTION AND CANCELLING HEARING
Debtor, Pashka Camaj, objects to the Chapter 7 Trustee's motion to sell her home free of any interests under 11 U.S.C. § 363(f). The house was sold at a foreclosure sale; the redemption period expires in 15 days. The Trustee has a buyer who stands ready to purchase the house for $69,000.00 more than the redemption amount. But now - at the eleventh hour - Debtor objects, contending that U.S. Bank's failure to consider her pre-foreclosure loan modification rendered the sale invalid under 12 C.F.R. § 1024.41. Debtor intends to obtain relief through an adversary proceeding.
Debtor's objection is overruled for two reasons. First, standing to bring the proceeding lies with the Trustee. 11 U.S.C. § 541(a)(1) (defining the estate as "all legal or equitable interests of the debtor in property as of the commencement of the case"); Auday v. Wet Seal Retail, Inc., 698 F.3d 902, 904 (6th Cir. 2012) (trustee has the exclusive right to assert claims that belong the bankruptcy estate). Second, any relief for violation of 12 C.F.R. § 1024.41 must be pursued through section 6(f) of the Real Estate Settlement Procedures Act ("RESPA"), 12 U.S.C. § 2605(f). 12 C.F.R. § 1024.41(a) ("[a] borrower may enforce the provisions of this section pursuant to section 6(f) of RESPA (12 U.S.C. [§] 2605(f))"). And, section 6(f) of RESPA is limited to money damages - other relief is not permitted. 12 U.S.C. § 2605(f); see also Servantes v. Caliber Home Loans, Inc., 2014 WL 6986414, at *1 (E.D. Mich. Dec. 10, 2014) ("the principal relief sought by Plaintiffs - to stay or set aside the sheriff's sale or, alternatively, to permit the matter to proceed to judicial foreclosure - is unavailable to them under RESPA"); Cataldi v. New York Cmty. Bank, 2014 WL 359954, at *2 (N.D. Ga. Feb. 3, 2014) ("Section 6(f) of RESPA . . . only allows suits for damages and costs, not injunctive relief. Therefore, this claim is . . . inapposite to a request for preliminary injunctive relief.").
Therefore, Debtor's objection is OVERRULED; the hearing scheduled for March 2, 2015 is CANCELLED. Dated: February 25, 2015
/s/ Mark A. Randon
Mark A. Randon
United States Bankruptcy Judge