Miguel Angel Ramirez and Aurora Ramirez

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UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
In re
MIGUEL ANGEL RAMIREZ,
aka MIGUEL A. RAMIREZ,
and AURORA RAMIREZ,
Debtors.
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Case No. 10-33582 TEC
Chapter 7
MEMORANDUM RE FNMA’S MOTION TO ANNUL STAY
On December 27, 2010, the court held a hearing on Federal
National Mortgage Association’s (FNMA) motion to annul the
automatic stay. 	Jonathan J. Damen appeared for FNMA. 	Debtors
appeared in pro per.
On September 1, 2010, FNMA purchased at a foreclosure sale
real property owned by Debtors, commonly known as 629 18th Street,
Richmond, California (the Property). 	Debtors filed a chapter 7
petition on September 14, 2010. 	The trustee’s deed was recorded on
September 17, 2010. 	FNMA, which was not served with notice of the
commencement of the case, served Debtors with notice to vacate the
premises on November 11, 2010. 	FNMA brought the current motion,
MEMORANDUM RE FNMA’S
MOTION TO ANNUL STAY
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Signed and Filed: December 27, 2010
________________________________________
THOMAS E. CARLSON
U.S. Bankruptcy Judge
________________________________________
Entered on Docket
December 28, 2010
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 10-33582 Doc# 47 Filed: 12/27/10 Entered: 12/28/10 13:59:35 Page 1 of 4

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seeking to have this court annul the automatic stay, to validate
the notice to quit, and to permit FNMA to obtain possession of the
Property via an unlawful detainer action (the Motion).
The chapter 7 trustee did not oppose the Motion.
Debtors filed written opposition to the Motion and appeared at
the hearing. 	In their written opposition, Debtors contend that the
foreclosure sale was improper for various reasons. 	Debtors also
contend that the trustee’s deed is invalid, because it was not
recorded within 15 days of the foreclosure sale.
I determine that cause exists to grant the Motion.
The Motion should be granted against the bankruptcy estate,
because the chapter 7 trustee, the official representative of the
estate, did not oppose the motion. 	Whether the trustee’s deed was
recorded within 15 days of the foreclosure sale is an issue that
can be raised effectively only by the chapter 7 trustee, because a
trustee’s deed would be good against Debtors whenever recorded.
Trustee elected not to raise the issue, likely because the Property
would still be subject to the deed of trust if the foreclosure sale
was vacated or the deed deemed ineffective against the estate.
The Motion should be granted against Debtors, because the
purpose of the automatic stay in a chapter 7 case is to protect the
debtor only until a discharge is granted. 	11 U.S.C.
§ 362(c)(2)(C). 	Debtors were entitled to receive a discharge on
December 20, 2010. 	More important, the bankruptcy discharge does
not protect debtors from an action to recover possession of real
property following a foreclosure sale.
In granting the Motion, this court does not determine whether
the foreclosure sale was proper. 	The court determines only that
MEMORANDUM RE FNMA’S
MOTION TO ANNUL STAY
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Case: 10-33582 Doc# 47 Filed: 12/27/10 Entered: 12/28/10 13:59:35 Page 2 of 4

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the automatic stay should not bar an unlawful detainer action by
FNMA, and that it is not necessary for the proper administration of
the bankruptcy case to determine whether the foreclosure sale was
proper.
Counsel for FNMA shall prepare an order consistent with this
decision.
**END OF MEMORANDUM**
MEMORANDUM RE FNMA’S
MOTION TO ANNUL STAY
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Case: 10-33582 Doc# 47 Filed: 12/27/10 Entered: 12/28/10 13:59:35 Page 3 of 4

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Court Service List
Miguel Angel Ramirez
858 Florida Street
San Francisco, CA 94110
Aurora Ramirez
858 Florida Street
San Francisco, CA 94110
Case: 10-33582 Doc# 47 Filed: 12/27/10 Entered: 12/28/10 13:59:35 Page 4 of 4