A synopsis of the Order Establishing Procedure for Relief From the Automatic Stay For Certain Foreclosure Proceedings in the NEW CENTURY TRS HOLDINGS, INC. et al. out of Delaware Bankruptcy Court follows:

1. Any party seeking relief from stay under a mortgage in which that Debtor, or any of its related entities holds a junior encumbrance must follow certain procedures in order to avoid filing a motion for relief from stay.

A. The party must provide a Notice that details the status of its pending foreclosure to the appropriate Debtor, its counsel, and the Creditor’s Committee.

B. The party must pay $1,000.00 per Notice given, up to a maximum of $10,000.00 to the Debtor’s estate.

C. Debtors shall provide receipt of the Notice.

D. To the extent that information provided in the Notice will violate State and/or Federal privacy laws, the requirement to provide that specific information is waived.

2. If the Debtor seeks to take action, it must do so within 30 days of receipt of the Notice.

3. If no action is taken, the Stay is deemed lifted without further order of the Bankruptcy Court.

4. If the Debtor reinstates that senior loan prior to the 30 days having run, and a later default occurs, the party seeking relief must file a written notice of default with the Court.

5. If the default is not cured within two business days, the stay is deemed lifted without further order of the Bankruptcy Court.

6. If a party seeks a comfort order after the 30 days have run, it must file written notice of its intent to file an Order Deeming the Stay Lifted. If there is no response from the Debtor within three business days, the Court may enter the Order.

A party seeking relief may instead file a motion for relief from stay in the normal course of action in lieu of this procedure.

For a copy of the New Century Relief Procedure Order, click here.

Summarized by Ben Levinson, Esq., Law Office of Benjamin R. Levinson. Mr. Levinson can be reached via telephone at (408) 866-2999 or via email at ben@benlevinsonlaw.com