In the first of these two related appeals, debtors and appellants Howard and Shelli Veal (the “Veals”) challenge the bankruptcy court’s order granting relief from the automatic stay under §362(d)1 to appellee Wells Fargo Bank, N.A., as Trustee for Option One Mortgage Loan Trust 2006-3, Asset-Backed Certificates Series 2006-3 (“Wells Fargo”). In the second appeal, the Veals challenge the bankruptcy court’s order overruling their objection to a proof of claim filed by appellee American Home Mortgage Servicing, Inc. (“AHMSI”). This proof of claim relates to the same obligation that is the focus of Wells Fargo’s motion for relief from the automatic stay.
In each appeal, the issue presented is whether the appellee established its standing as a real party in interest to pursue the relief it requested. With respect to Wells Fargo’s request for relief from the automatic stay, the Bankruptcy Appellate Panel holds that a party has standing to seek relief from the automatic stay if it has a property interest in, or is entitled to enforce or pursue remedies related to, the secured obligation that forms the basis of its motion. With respect to AHMSI’s proof of claim, the Bankruptcy Appellate Panel holds that a party has standing to prosecute a proof of claim involving a negotiable promissory note secured by real property if, under applicable law, it is a “person entitled to enforce the note” as defined by the Uniform Commercial Code.
Applying these holdings, in the relief from stay appeal, the Bankruptcy Appellate Panel determines that the record does not support the bankruptcy court’s finding that Wells Fargo had standing.
REVERSED with respect to the bankruptcy court’s relief from stay order. In AHMSI’s claim objection appeal, the bankruptcy court did not make findings necessary to determine AHMSI’s standing as a person entitled to enforce the Veals’ obligations, so the Bankruptcy Appellate Panel VACATED the claim objection order and REMANDED for further proceedings.