How many mortgages are located in securitized trusts and unrecorded because the mortgagor has never defaulted? Plenty, betcha.
A debtor (First Mortgage), which was the mortgagee of record, foreclosed a mortgage and obtained title to the foreclosed property notwithstanding that it had assigned the note and mortgage to another party several years before the foreclosure sale. After the assignee sought to make a claim based on the assignment, the debtor’s chapter 7 trustee sought to avoid the rights of the assignee using his strong-arm powers. After the bankruptcy court found in favor of the chapter 7 trustee, the assignee appealed.
View original post 673 more words