Davis v. Pennymac Loan Services, LLC
May 07, 2020OUTCOME: The Davis foreclosure was invalid as it did not state the specific default which prompted the foreclosure.
On November 8, 2018, Debtors property was sold to PennyMac at foreclosure sale. On November 21, 2018, Davis filed a bankruptcy petition and sought to include the foreclosed property in the estate. Pen ... nyMac filed a post-sale motion for relief stating that Davis no longer had an interest in the property, and it should not be included in the estate. Davis responded that the Notice was defective and the foreclosure was not valid. The bankruptcy court took the matter under advisement and certified a question to the Arkansas Supreme Court: “Whether mere acknowledgement that a default has occurred is sufficient for the trustee’s Notice of Default and Intention to Sell or does the Arkansas statute require disclosure of the specific default under the terms of the mortgage agreement.”
