A recent Second Circuit decision found that a mortgage lender violated the automatic stay by proceeding with a foreclosure action sale of real property after a tenant at the property filed for bankruptcy.

The court's ruling that the automatic stay was violated was premised on the fact that the tenant was a named defendant in the mortgage lender's foreclosure action. The Second Circuit advised that the lender should have sought relief from the automatic stay in connection with the lender's foreclosure action.

For further information on this topic, please contact James Sowka at Seyfarth by telephone (+1 (213) 270-9607) or by email [email protected]). The Seyfarth website can be accessed at ‚Äčwww.seyfarth.com.