Sidney W. Mundt, and Alice Louise Mundt v. Southland Savings & Loan Association of Chula Vista

Appellants appeal from an order entered on February 12, 1965, by the United States District Court affirming the orders of the Referee in Bankruptcy vacating temporary orders restraining South-land Savings & Loan Association of Chula Vista from foreclosing on a deed of trust.

On March 27, 1963, appellants were owners of a single family residence located on a lot in Imperial Beach, County of San Diego,'State of California. Said lot and residence were encumbered by a deed of trust dated June 13, 1961, executed by appellants to secure an indebtedness evidenced by a promissory note in favor of South Bay Savings & Loan Association now known as Southland Savings & Loan Association of Chula Vista. Commencing in October, 1962 appellants defaulted in the payments due the holder of the note secured by the deed of trust.

On March 19, 1963, appellants filed in the United States District Court for the Southern District of California their petition for proceedings for an arrangement under Chapter XI of the Bankruptcy Act. Pursuant to an application therefor, an order to show cause and temporary restraining order was issued by the Referee in Bankruptcy. On March 22, 1963, the Referee issued his…