Ellis v. Junying Yu (In Re Ellis), 523 B.R. 673

Ellis, a Chapter 7 debtor, purchased a San Francisco home secured by a deed of trust; she defaulted mid-2008 and filed multiple bankruptcy cases later dismissed for non-compliance or missed payments.
Deutsche Bank acquired the Property at a foreclosure sale in 2009 and later assigned its rights in an unlawful detainer judgment to Yu in 2013.
Yu filed a motion for relief from stay and for in rem relief under § 362(d)(2) and (4) arguing he owned the Property and Ellis had no cognizable interest.
Ellis objected, asserting Yu was not a secured creditor and challenging the validity of Yu’s asserted assignment.
The bankruptcy court granted stay relief and in rem relief; Ellis appealed, and the court later discharged Ellis in a subsequent Chapter 7 case, rendering part of the stay moot.
On review, the panel dismissed the moot portion and reversed the § 362(d)(4) grant because Yu was not a creditor with a secured claim.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Is the appeal moot due to Ellis’s discharge?	Ellis argues discharge terminates the stay and moots the appeal.	Yu contends some relief orders remain reviewable despite discharge.	Moott; stay-relief portion dismissed as moot.
Was in rem relief under § 362(d)(4) proper where Yu was not a secured creditor?	Ellis and Yu dispute ownership; Yu seeks in rem relief.	Yu argues relief is warranted by ownership/possession.	Reversed; Yu was not a creditor with a secured interest, so § 362(d)(4) relief was improper.

Bigelow v. Commissioner, 65 F.3d 127 (9th Cir. 1995) (stay terminates upon discharge)
Pitts v. Terrible Herbst, Inc., 653 F.3d 1081 (9th Cir. 2011) (dismissal when events resolve the dispute post-appeal)
In re Patullo, 271 F.3d 898 (9th Cir. 2001) (mootness when no live controversy remains)
In re E.R. Fegert, 887 F.2d 955 (9th Cir. 1989) (court may review evidence to resolve issues on appeal)