Luis Arturo Flores Ramirez
21-11162
Bankr. D.N.M.Apr 22, 2022Background
- Debtor Luis Arturo Flores Ramirez filed Chapter 13 on October 14, 2021; Estate owns real property at 5696 Highway 64, Farmington, NM.
- Wells Fargo holds two recorded mortgages, obtained a state-court foreclosure judgment and a transcript of judgment; Proofs of Claim allege total secured sums far exceeding property value.
- IRS tax liens totaling approximately $226,193 are recorded against the Property.
- Debtor sought court approval to employ Dimmick Realty (Broker) and to sell the Property under a Purchase & Sale Agreement (PSA); Wells Fargo moved for relief from stay and abandonment.
- Parties reached a stipulation resolving objections; court approved limited broker employment, authorized a sale (with specified modifications), and granted conditional relief from the automatic stay subject to a 60‑day sale deadline.
Issues
| Issue | Debtor's Argument | Wells Fargo's Argument | Held |
|---|---|---|---|
| Employing broker and compensation | Approval under §327 to market and sell; pay broker commission per Listing Agreement | Objected to certain Listing Agreement terms and compensation triggers | Employment approved in part: listing for sale only; term ends at closing or stay relief; 6% commission + GRT payable only if sale closes; no other compensation approved |
| Approval of sale free and clear and PSA terms | Approve sale under §363(b)/(f) free and clear; allow PSA terms including certain buyer protections and seller costs | Objected to PSA provisions that would shift costs/indemnities/encumbrance liabilities to Wells Fargo or the estate | Sale approved in part: sale for $650,000+ free and clear; liens attach to proceeds; denied PSA provisions obligating estate to pay for new survey, indemnities, encumbrances or monetary liens; allowed limited closing costs/prorations as specified |
| Relief from automatic stay and abandonment | Debtor opposed immediate stay relief and sought time to close sale | Wells Fargo sought relief under §362(d)(2) and abandonment under §554 because no equity and not necessary for reorganization | Stay granted in part: automatic stay remains for 60 days to allow closing and payment of Net Sale Proceeds; if proceeds not received, Wells Fargo may notify counsel and, after 3 business days if uncured, file notice and stay terminates allowing foreclosure; property abandoned upon stay termination; deficiency claims handled through bankruptcy claims process |
| Value/equity and necessity for reorganization | Debtor sought to sell to realize value for plan | Wells Fargo maintained secured claims exceed value; no equity; not necessary for reorganization | Parties stipulated value at most $650,000; foreclosure judgment balance exceeds value; court found no equity and Property not necessary to effective reorganization |
Key Cases Cited
- None cited (the stipulated order and decision do not rely on reported-case authority).