Key facts
- HouseCanary received court approval for its first-day motions and access to debtor-in-possession financing.
- The company filed for Chapter 11 bankruptcy protection to prevent an undisclosed lender from seizing its operations after defaulting on a $30 million loan.
- The San Francisco-based property intelligence and valuation platform can maintain customer programs, meet employee obligations, and continue ordinary-course business operations.
- HouseCanary is seeking up to $175 million from Rocket Companies' title segment, now known as Rocket Close, as part of a trade secret theft suit.
- A Texas jury previously awarded HouseCanary $175 million in compensatory damages in a second trial related to the trade secret theft suit.
HouseCanary received U.S. Bankruptcy Court approval for its first-day motions and access to debtor-in-possession financing, allowing the company to continue normal operations while it moves through its Chapter 11 reorganization. The company filed for Chapter 11 bankruptcy protection on Tuesday to prevent an undisclosed lender from seizing HouseCanary and selling its operations, after defaulting on a $30 million loan in January.
At a hearing Thursday, the U.S. Bankruptcy Court for the District of New Jersey approved relief that permits the San Francisco-based property intelligence and valuation platform to maintain customer programs, meet employee obligations, and continue ordinary-course business operations. The court also granted access to DIP financing to provide additional liquidity during the Chapter 11 process. A further hearing is expected in October to consider approval of additional DIP financing.
HouseCanary stated that its customer-facing operations, including products, data services, and support, are continuing without interruption and that it expects to keep meeting its obligations to customers throughout the reorganization. CEO Chris Rediger said in a statement that the approvals provide the company with the liquidity and operating flexibility to address its capital structure and position HouseCanary with a stronger balance sheet for future growth.
In conjunction with the bankruptcy filing, HouseCanary is seeking potentially upwards of $175 million from Rocket Close, Rocket Companies’ title segment, as part of its trade secret theft suit. This legal dispute dates back to 2015. A Texas jury previously ruled in favor of HouseCanary, ordering Amrock (now Rocket Close) to pay over $706 million, later increased to $740 million. However, this verdict was thrown out on appeal in 2020, leading to a new trial. The second trial concluded in March 2026 with a jury awarding HouseCanary $175 million in compensatory damages, though the court has yet to issue a final judgment. A spokesperson for Rocket stated that HouseCanary's need for $260 million does not resolve legal challenges and that they intend to appeal any adverse judgment.