McReynolds v. Rivers (In Re Rivers)

MEMORANDUM OF DECISION

(Complaint to Modify the Stay)

CALVIN K. ASHLAND, Bankruptcy Judge.

FACTS

The debtors executed a promissory note for $40,000 in favor of Herbert S. McRey-nolds on October 4, 1982. The note was secured by two parcels of real property. One deed of trust secured an unimproved parcel located in Lake Arrowhead, California. The other deed of trust secured debtors residence in Oxnard, California.

Debtors defaulted on their obligation. McReynolds initiated foreclosure proceedings under the power of sale of each trust deed on May 13, 1983. The debtors filed a Chapter 11 petition on…