Memorandum of Decision Re: Foreclosure Sale Before Bankruptcy

IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA
In re RICHARD TAYLOR,                                                                                                   No. 94-10896      Debtor. ___________________________/
Memorandum of Decision
     The debtor filed his Chapter 13 petition just after his house was sold at nonjudicial foreclosure sale but just before the trustee's deed was recorded. The issue is whether it is too late for the debtor to cure the default and save his home pursuant to section 1322(b)(3) of the Bankruptcy Code.      If the court were writing on a blank slate, it would be inclined to agree with the court in In re Young, 156 B.R. 282 (Bkrtcy.D.Idaho 1993)(construing Idaho law), that the debtor's rights are cut off by the sale. However, the court of appeals has held that the sale itself does not terminate all of the debtor's rights. In re Walker, 861 F.2d 597 (9th Cir.1988). Walker has been held to permit the debtor to save his home in cases such as this. In re Duncombe, 143 B.R. 243 (Bkrtcy.C.D.Cal.1992); In re Williams, 124 B.R. 311 (Bkrtcy.C.D.Cal.1991).      The objecting creditor in this case has filed no formal brief. Its entire argument was to hand the court a copy of the 1993 amendment to California Civil Code section 2924h. No reasons were given as to why the creditor thinks the amendment overruled Walker, nor is such an interpretation evident. Accordingly, the court finds that it is not too late for the debtor to save his home.      Counsel for the debtor shall submit an appropriate form of order forthwith.
Dated: May 31, 1994                                                                                                   _______________________                                                                                                                                                    Alan Jaroslovsky                                                                                                                                                    U.S. Bankruptcy