IN RE: NATHAN MATLOCK AND LENA MATLOCK, Debtors. NATHAN MATLOCK AND LENA MATLOCK, PLAINTIFFS v. LOMAS MORTGAGE U.S.A., INC., AND A.L. TENNEY, TRUSTEE, DEFENDANTS, 154 B.R. 721

Summary

The debtors failed to make payments on a note. Defendant creditor initiated a nonjudicial foreclosure proceeding and filed notice of default. The notice of default provided that the property would be sold at the courthouse but failed to specify at which district courthouse the sale would take place. The creditor purchased the property. The debtors then filed a Chapter 13 bankruptcy petition and a plan proposing that the debtors retain their residence and make payments. The creditor challenged the plan, alleging that it held title to the property. The debtors argued that the statutory foreclosure sale was invalid under Ark. Code Ann. § 18-50-101 et seq. because the notice failed to specify the district courthouse. The court abstained from ruling on the matter because it concluded that the issues raised should be determined by the state court. Since the statute was recently enacted, there was only one reported case construing the statute. Without significant precedent, the court was ...