The Court in the New Century bankruptcy filings had set up an optional streamlined procedure for seeking relief from stay against any loans held by one of the New Century entities. Despite that procedure, the court and the creditors committee were apparently inundated with relief from stay motions. Since the assets of the New Century entities were all sold off in the bankruptcy, there was no longer a necessity of the stay to protect the debtors. 

As a result, at the request of the creditor’s committee, the Court issued a blanket order that the stay is terminated as to any lender that has a loan that is formerly in the name of one of the New Century entities. The lenders do not need to obtain an Order terminating the stay and can foreclose directly in compliance with the appropriate state law. 

Click here for a copy of the court order that the stay is terminated.
Click here for a copy of the debtor’s motion.