Unrecorded Mortgage Assignment: If You Snooze, You Can Lose

How many mortgages are located in securitized trusts and unrecorded because the mortgagor has never defaulted? Plenty, betcha.

Bankruptcy-RealEstate-Insights

In re First Mortgage Fund, Inc., 498 B.R. 180 (E.D. Mich. 2013) –

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.

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One thought on “Unrecorded Mortgage Assignment: If You Snooze, You Can Lose

  1. Thanks to MERS, only the original
    Pretender lender and MERS as
    mortgagee is the only thing recorded
    untill some other entity comes along
    you have never heard of to foreclose
    if you haven’t paid you mortgage.
    Then it’s time to make them prove
    they have standing to do so!

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