Walker v. California Mortgage Service (In re Walker)

PRO, District Judge:

I

This appeal arises from the adversary proceeding brought by Debtor Georgia B. Walker to set aside a foreclosure sale of real property conducted in violation of an automatic stay, on the grounds that the purchaser, Frank Dorman, failed to record his trustee’s deed until after Walker had recorded a notice of bankruptcy.

The bankruptcy court granted partial summary judgment, holding that, under California’s race-notice recording statute,1 the transfer of the property to Dorman may be avoided by Walker because Walker recorded her notice of bankruptcy petition before Dorman…