Insight

Adam Leitman Bailey, P.C. Secures Settlement for Lender Following Stalled Negotiations

Adam Leitman Bailey, P.C. Secures Settlement for Lender Following Stalled Negotiations

Marianne Sanchez

Marianne Sanchez

July 30, 2021 11:39 AM

Although a lender may successfully obtain a Judgment of Foreclosure and Sale in a foreclosure proceeding, oftentimes a lender must additionally defend its rights in a borrower’s subsequent bankruptcy proceeding where the borrower is hoping to avoid the foreclosure auction.

In a recent case, Adam Leitman Bailey, P.C. was retained to step in as counsel for a lender in a bankruptcy proceeding where loss mitigation negotiations with the borrower had stalled.

The lender obtained a Judgment of Foreclosure and Sale against the borrower in the underlying foreclosure matter, however, on the eve of the foreclosure auction, the borrower filed a Chapter 13 Bankruptcy Petition to stay the sale. Under the lender’s prior counsel, nearly two and a half years had passed without any significant progress in either negotiating a settlement with the borrower or obtaining relief from the stay in Bankruptcy Court.

Immediately after the lender retained Adam Leitman Bailey, P.C., the Adam Leitman Bailey, P.C. team set out to quickly engage in settlement negotiations with the borrower’s counsel to finally resolve the matter for its client.

Adam Leitman Bailey, P.C. attorneys communicated with the borrower’s counsel on a regular basis, taking the time to understand the borrower’s concerns, while simultaneously advocating for the lender’s rights under the loan documents.

After only a few months of negotiations, Adam Leitman Bailey, P.C. secured a settlement agreement with the borrower. However, the firm faced an additional barrier to success because the Bankruptcy Trustee objected to the settlement agreement and refused to release any of the Chapter 13 funds in the trustee’s possession, pursuant to the terms of the agreement.

Since the settlement could not be finalized without the timely release of the funds, the Adam Leitman Bailey, P.C. team worked to quickly file a Motion to Approve the Stipulation and Order in the bankruptcy proceeding. After a hearing, the Bankruptcy Court agreed with Adam Leitman Bailey, P.C., dismissed the bankruptcy, and ordered the trustee to disburse the funds to the lender in accordance with the terms of the settlement agreement.

Ultimately, without the Adam Leitman Bailey, P.C. team’s expertise in navigating all moving parts, the lender would still be tied up in the bankruptcy.

Jackie Halpern Weinstein, Esq. and Marianne Sanchez, Esq. represented the lender on behalf of Adam Leitman Bailey, P.C.’s Foreclosure Litigation Group in this matter.

Trending Articles

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

Announcing the 2022 Best Lawyers® in the United States


by Best Lawyers

The results include an elite field of top lawyers listed in the 28th Edition of The Best Lawyers in America® and in the 2nd Edition of Best Lawyers: Ones to Watch in America for 2022.

2022 Best Lawyers Listings for United States

2021 Best Lawyers: The Global Issue


by Best Lawyers

The 2021 Global Issue features top legal talent from the most recent editions of Best Lawyers and Best Lawyers: Ones to Watch worldwide.

2021 Best Lawyers: The Global Issue

The U.S. Best Lawyers Voting Season Is Open


by Best Lawyers

The voting season for the 31st edition of The Best Lawyers in America® and the 5th edition of Best Lawyers: Ones to Watch® in America is officially underway, and we are offering some helpful advice to this year’s voters.

Golden figures of people standing on blue surface connected by white lines

How To Find A Pro Bono Lawyer


by Best Lawyers

Best Lawyers dives into the vital role pro bono lawyers play in ensuring access to justice for all and the transformative impact they have on communities.

Hands joined around a table with phone, paper, pen and glasses

The Best Lawyers in Australia™ 2024 Launch


by Best Lawyers

Best Lawyers is excited to announce The Best Lawyers in Australia™ for 2023, including the top lawyers and law firms from Australia.

Australian Parliament beside water at sunset

How Palworld Is Testing the Limits of Nintendo’s Legal Power


by Gregory Sirico

Many are calling the new game Palworld “Pokémon GO with guns,” noting the games striking similarities. Experts speculate how Nintendo could take legal action.

Animated figures with guns stand on top of creatures

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

Inflation Escalation


by Ashley S. Wagner

Inflation and rising costs are at the forefront of everyone’s mind as we enter 2023. The current volatile market makes it more important than ever to understand the rent escalation clauses in current and future commercial lease agreements.

Suited figure in front of rising market and inflated balloon

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

The Upcycle Conundrum


by Karen Kreider Gaunt

Laudable or litigious? What you need to know about potential copyright and trademark infringement when repurposing products.

Repurposed Products and Copyright Infringemen

A Celebration of Excellence: The Best Lawyers in Canada 2024 Awards


by Best Lawyers

As we embark on the 18th edition of The Best Lawyers in Canada™, we are excited to highlight excellence and top legal talent across the country.

Abstract image of red and white Canada flag in triangles

8 Different Types of Criminal Defenses in Law


by Best Lawyers

Learn about the different types of criminal defenses available in law, including innocence, self-defense, insanity and more. Protect your rights today.

Silver handcuffs laying on finger printed papers

Wage and Overtime Laws for Truck Drivers


by Greg Mansell

For truck drivers nationwide, underpayment and overtime violations are just the beginning of a long list of problems. Below we explore the wages you are entitled to but may not be receiving.

Truck Driver Wage and Overtime Laws in the US

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

The 2024 Best Lawyers in Spain™


by Best Lawyers

Best Lawyers is honored to announce the 16th edition of The Best Lawyers in Spain™ and the third edition of Best Lawyers: Ones to Watch in Spain™ for 2024.

Tall buildings and rushing traffic against clouds and sun in sky