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petition he owned two homes, his San Francisco residence and a
second home in San Diego, California. Petitioner’s San Diego
home was sold by the bankruptcy estate for an amount exceeding
the outstanding mortgage on the property.
As a result of the filing of petitioner’s individual
bankruptcy, an automatic stay was imposed against the property of
the bankruptcy estate in accordance with 11 U.S.C. sec. 362
(1994). In December 1994, Wells Fargo moved the bankruptcy court
for relief from the automatic stay and requested permission to
conduct a trustee’s sale of petitioner’s San Francisco residence.
Petitioner opposed the relief from stay on the ground that the
property had a value substantially greater than the outstanding
debt. On January 23, 1995, the bankruptcy court granted Wells
Fargo’s motion for relief from the stay.
On March 9, 1995, Wells Fargo filed a Notice of Default on
the Deed of Trust on petitioner’s residence. One day later,
petitioner listed his residence for sale with a broker, and on
May 8, 1995, petitioner entered into a contract to sell the
property subject to the bankruptcy court’s approval. Sometime
thereafter, the buyer backed out of the sale.
On July 21, 1995, Wells Fargo filed a Notice of Trustee's
Sale. On August 10, 1995, the Trustee under the Deed of Trust
conducted a trustee’s sale of petitioner’s residence (the
foreclosure) at which Wells Fargo purchased the property with a
bid of $1,215,000. At foreclosure there remained an outstanding
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