1st Circuit B.A.P. restores the “gavel rule” for New Hampshire Foreclosures

US Bank Natl Assn v Vertullo In re Vertullo 610 BR 399 BAP 1st Cir 2020

The Debtor urged the BAP to follow In re Beeman, 235 B.R. 519 (Bankr. D.N.H. 1999)(foreclosure is not concluded until the foreclosure deed is recorded) but the bank argued that the BAP should follow LaPointe,  TD Bank, N.A. v. LaPointe (In re LaPointe), 505 B.R. 589, 595 (1st Cir. BAP 2014), that a chapter 13 debtor mortgagor no longer had any rights in the mortgaged property once the auctioneer’s hammer fell irrespective of when or if a foreclosure deed was recorded (the so-called “gavel rule”).  In a decision which touched upon the standards for Motions for Relief, 11 USC § 541-Estate Property, Plan Confirmation under 11 USC § 1322(b)(3) and (5) and Stare Decisis, the bank won.