Fleet Consumer Discount Co. v. Graves

OPINION OF THE COURT

SCIRICA, Circuit Judge.

This is an appeal from a judgment of the district court sitting as an appellate court in bankruptcy. At issue is whether, under Pennsylvania law, a non-record interest holder in real property is entitled to personal service before a foreclosure sale even though notice was mailed to the record owners and was posted on the property; and whether a junior secured creditor can be a bona fide purchaser for value without notice, if at the time of sale it knew, or should have known, of the unrecorded interest.

The bankruptcy court found that Pennsylvania law…