I am not an expert in bankruptcy by any means. However, I would suspect that even if the deed is in error, the only thing that the debtor would have is a right of redemption. Since they are already in bankruptcy, it would be unlikely the trustee would try to exercise that right. As for the trustee setting aside the entire foreclosure, I don't know how that would work under the possession theory of foreclosure. In any case, the mortgage is still a valid lien and a debt that must be satisfied under the bankruptcy. Since the debt is secured by the land, it would probably end up the same as the original foreclosure action as it is assumed the value of the land is less than the secured debt.
My answer to your question is that the property would probably be subject to the bankruptcy court, regardless of the validity of the deed, as long as there was a right of redemption available to the debtor. Others with more knowledge and experience may have a different conclusion.
to post a reply:
login - or -
register