In 1987, Barbara and George Dawson purchased their home. They obtained a home loan from a predecessor of Washington Mutual Bank (WaMu). In 1996, the mortgage was in default. WaMu scheduled its foreclosure sale. But just before that sale, George Dawson filed Chapter 7 bankruptcy. Purchase Bob Bruss reports online. WaMu claimed it did not receive notice of the bankruptcy filing so it proceeded with the foreclosure sale and took title to the home when no bidders showed up at the auction. WaMu then began eviction of the Dawsons. When it then received notice of George's earlier Chapter 7 bankruptcy filing, WaMu withdrew its eviction filing, which violated the bankruptcy automatic stay. However, in 1998 the Dawsons filed Chapter 13 bankruptcy reorganization. WaMu filed a proof of claim as ...
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