In re Gilbert
Opinion
Lead Opinion
Houle, J.
MEMORANDUM OF DECISION DENYING CONFIRMATION OF DEBTOR’S. CHAPTER 13 PLAN AND DISMISSING DEBTOR’S CHAPTER 13 CASE WITHOUT PREJUDICE
I. FACTUAL BACKGROUND
THE PHOENIX PROPERTY
Debtor Maurice Allen Gilbert (“Debt- or”), filed for bankruptcy on February 10, 2014 (“Petition Date”). Prior to the Petition Date, on August 29, 2005, InterBay Funding LLC (“InterBay”) loaned $380,000 (the “Loan”) to Debtor, and In-terBay secured its right to repayment of the Loan by obtaining a deed of trust (the “Phoenix Deed of Trust”) on real property located at 402 & 406 N. 42nd Street, Phoenix, AZ 85008 (the “Phoenix Property”).
On August 28, 2006, InterBay assigned the Phoenix Deed of Trust to Bayview Loan Servicing, LLC (“Bayview”) by way of a corporate deed of assignment recorded on February 26, 2007. Without the consent of Bayview, on August 7, 2008, Debtor transferred title in the Phoenix Property to Ridgeline Financial, LLC (“Ridgeline”) and Sardius Group, LLC (“Sardius”), two LLC companies owned by the Debtor.
After a series of corporate assignments, Creditor APT 4891, LLC (“APT”) succeeded to the Phoenix Deed of Trust on April 11, 2013. After Debtor defaulted on the Loan, on May 2, 2013,…