BAC Home Loans Servicing, LP, F/K/A Countrywide Home Loans Servicing, LP v. Kaiser C. Taylor and All Known and Unknown Heirs of Kaiser C. Taylor and Kathy K. Taylor

This case involves a foreclosure sale that occurred while an automatic stay was in effect pursuant to the mortgagor’s bankruptcy proceeding. The mortgagee petitioned the trial court to find the foreclosure void ab initio and to reform the real estate records by voiding the successor trustee’s deed and placing the parties in their original positions as to the deed of trust. The trial court denied the relief requested by the mortgagee. The mortgagee appeals. We hold that the foreclosure sale is invalid and of no effect because it is voidable, pursuant to United States Code § 362(a)(6) and (c) (Supp. 2012) and Tennessee law, and because there existed no equitable circumstances sufficient to constitute an exception to the operation of the stay. We reverse the denial of summary judgment and remand to the trial court for further proceedings.