Default judgement was entered and then a stay was sought. The parties then entered into consent orders providing for the lifting of the stay. These were held in escrow while the borrower’s attempted a refinance.
The refinance fell over and the borrowers claim it was because the Lender scared away the incoming mortgagee by providing details of the defaults. On the basis of this the borrowers claimed a default in the agreement whereby the consent orders were entered into. The court determined that as there may be some merit in the claim it should preserve the status quo and made the orders sought.