Lowell Deeds

The latest on real estate recordings and new technology from the Middlesex North Registry of Deeds in Lowell

April 16, 2009

The importance of assignments

by @ 11:58 am. Filed under Real Estate

A couple of cases decided last fall by the Bankruptcy Court for Massachusetts recently came to my attention. In both cases, lenders seeking to foreclose mortgages who had filed motions for relief from the automatic stay imposed when a debtor files bankruptcy had their motions denied because they (the lenders) could not prove to the court that they were the record holders of the mortgages sought to be foreclosed. Reading between the lines, it looks like the lenders adopted a position that essentially said “we’re in high finance and shouldn’t have to waste time with trivial documents like mortgage assignments” to which the Bankruptcy Court replied (and I’m paraphrasing) “don’t give us that high finance stuff; this is all about your sloppiness and lack of attention to important details.” Needless to say, the courts won out and the ability of the lenders to foreclose was thrown into question until the precise ownership record of the mortgages was established. Both of these cases are better described in these newsletters, one from Edwards Angell, the other from Crowell Moring.

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