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Scott v. U.S. Bank Nat'l Ass'n (In re Scott)

Name
IN RE: Michael David SCOTT, Debtor. Michael D. Scott, Plaintiff, v. U.S. Bank National Association as Trustee Under Pooling and Servicing Agreement Dates as of May 1, 2006 GS Non P Trust 2006-HE3 Mortgage Pass Through Certificates Series 2006-HE3 and Korde & Associates PC, Defendants.
Attorney(s)
Michael D. Scott, Loretto, PA, pro se., William E. Miller, Stern & Eisenberg, PC, Warrington, PA, Brett L. Messinger, Duane Morris LLP, Philadelphia, PA, for Defendant., The background of this adversary proceeding is as follows. Debtor, Michael David Scott, commenced his bankruptcy case by filing for relief under Chapter 7 of the Bankruptcy Code ( 11 U.S.C. § 101 et seq. ) on January 25, 2017., Debtor owns certain real property located at 8 Tiffany Road, Bourne, MA 02532 (the "Property"). See Amended Schedule A/B: Property, 17-70045-JAD, ECF No. 234. Following the commencement of the Debtor's bankruptcy case, on February 8, 2017, U.S. Bank filed a Motion of U.S. Bank, National Association, as Trustee Under the Pooling and Servicing Agreement Dated as of May 1, 2006, GSAMP Trust 2006-HE3, Mortgage Pass-Through Certificates, Series 2006-HE3 for Relief from the Automatic Stay under § 362 Pursuant to Bankruptcy Procedure Rule 4001 ("Motion for Relief from Stay") at Case No. 17-70045-JAD, ECF No. 13., In the Motion for Relief from Stay, U.S. Bank asserted that it is the holder of a mortgage on the Property in the original principal amount of $ 511,200.00 dated December 8, 2005. See Motion for Relief from Stay at ¶ 3. The Motion for Relief from Stay further asserted that the payoff due on the mortgage was $ 414,023.46. See Motion for Relief from Stay at ¶ 8., A hearing was held on the Motion for Relief from Stay on March 8, 2017. That same day, the Debtor commenced this adversary proceeding by filing a complaint against U.S. Bank. See ECF No. 7 (the "Amended Complaint"). The Adversary Proceeding Cover Sheet accompanying the Amended Complaint indicates that the Debtor asserted claims to (i) determine the validity, priority, or extent of a lien under Fed.R.Bankr.P. 7001(2), (ii) determine dischargeability of a debt under 11 U.S.C. § 523(a)(4), (iii) grant injunctive relief concerning the imposition of stay pursuant to Fed.R.Bankr.P. 7001(7), and (iv) dismiss U.S. Bank's claim. See ECF No. 7 at pg. 1., On August 16, 2017, the Debtor and U.S. Bank filed a Stipulation and [Proposed] Order Approving the Settlement (the "Stipulation). See 17-7008-JAD, ECF No. 54. The Stipulation directly references the Motion for Relief from Stay. See Stipulation at ¶ 10. Pursuant to the Stipulation, the parties agreed that the Debtor would have until December 15, 2017 to sell the Property, that if such sale were to occur the "Loan" would be paid in full, but if no sale took place by that date that U.S. Bank would be granted relief from the automatic stay. Further, the Stipulation withdrew the Motion for Relief from Stay and discontinued the adversary proceeding with prejudice. See Stipulation at pg. 3.

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