The U.S. Bankruptcy Court for the District of New Jersey has approved first-day relief for HouseCanary, granting the firm access to an initial $3 million in debtor-in-possession financing.
HouseCanary, a real estate technology and analytics company founded in 2013, filed for Chapter 11 bankruptcy protection on September 22 alongside five affiliated companies.
The filings came after a secured creditor attempted to foreclose on collateral securing a $30 million loan held by the company.
HouseCanary had entered into a credit facility with Ocean II PLO LLC in March 2021, granting the lender a security interest in almost all of its assets.
Those assets included bank accounts, securities accounts, equipment, and investment property, leaving the company significantly exposed once it defaulted on the loan.
HouseCanary filed a complaint with the Superior Court of the State of California on September 17 to enjoin a public foreclosure sale being pursued by Ocean II.
The company followed that complaint with an ex parte application for a temporary restraining order the following day, but the court denied the request on September 21.
According to HouseCanary, that denial made a bankruptcy filing necessary to continue operating as a going concern, forcing the Chapter 11 route to preserve its business.
At the September 24 hearing, the court approved motions supporting the continuation of customer programs, employee obligations, ordinary-course business operations, and access to debtor-in-possession financing.
Assets excluded from the foreclosure notice included claims and proceeds related to litigation HouseCanary had been involved in with Amrock Inc. and Quicken Loans Inc. in Texas, dating back to 2016 and 2018.
In a countersuit against Amrock, HouseCanary alleged that its home valuation technology and other trade secrets had been misappropriated by the opposing party.
A jury awarded HouseCanary more than $700 million in damages in 2018, but that verdict was overturned on appeal, leading to a retrial conducted in March 2026.
That second trial resulted in a significantly reduced award of $175 million, which may form part of the assets available to creditors during the restructuring process.
HouseCanary’s Chapter 11 filing states that both estimated assets and estimated liabilities fall between $100 million and $500 million, with funds expected to be available for unsecured creditors.
The 30 largest unsecured creditors named in the filing include Black Knight Technologies, the National Association of Realtors, Amazon Web Services, Google Ads, and Facebook Ads.
The court has granted HouseCanary an extension to file its statement of financial affairs and schedules, which may provide further detail on creditors’ interests in litigation proceeds.
HouseCanary has indicated it expects a further hearing in October to address additional debtor-in-possession financing arrangements as the reorganisation continues.
A status hearing before Judge Eamonn James O’Hagan has been scheduled for November 12, 2026, marking the next significant milestone in the bankruptcy proceedings.