Your last sentence was cut-off.
1) What is your last sentence?
2) Is any money owed to the loan servicing company?
The automatic stay that goes into affect as soon as a Bankruptcy is filed does not apply to any property that the debtor does not own. Bankruptcy Stat. 362(a).
Since the loan servicing company does not own the property in question, there is no reason that you cannot proceed to do a re-conveyance (either full or partial) on your own, without waiting for the trustee's approval.
However, if you have a contractual obligation to pay the loan servicing company to do the re-conveyance, the trustee will be able to enforce that obligation, which means the cost to re-convey would have to be paid to the loan servicing company even though you are the one who did it.
If the loan servicing company cannot do the re-conveyance soon because of the Bankruptcy, you will have to do it - even though the borrower asked that the loan servicing company do it - because the borrower was not aware of the Bankruptcy when he asked that the loan servicing company process the re-conveyance.
If the borrower still owes you $1,000, then he is entitled to a partial re-conveyance only.
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