Tag Archives: strong arm powers

Unrecorded Mortgage Assignment: If You Snooze, You Can Lose

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 … Continue reading

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Missing Mortgage Details: This Time a Mortgage Survives the Trustee’s Attack

PNC Bank, Nat’l Ass’n v. Nordwall, 499 B.R. 599 (C.D. Ill. 2013) – A mortgagee moved for entry of a default judgment in its foreclosure action.  The mortgagor’s chapter 7 trustee intervened and claimed that the mortgage could be avoided using his … Continue reading

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Preferences: Surprise – Being Fully Secured May Not Be A Complete Defense

Gladstone v. Bank of America, N.A. (In re Vassau), 499 B.R. 864 (Bankr. S.D. Cal. 2013) – A chapter 7 trustee sought to avoid payments made to a fully secured senior mortgagee within 90 days prior to bankruptcy as preferential to an … Continue reading

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Mortgage Acknowledgments: Tiny Deviation From Suggested Forms Can Spell Disaster

Weiss v. Wells Fargo Bank, N.A. (In re Kelley), 498 B.R. 392 (1st Cir. BAP 2013) – A chapter 7 trustee sought to avoid a mortgage granted by the debtors on the basis that the acknowledgment was defective.  After the bankruptcy court … Continue reading

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LLC Member: Is a Pre-Bankruptcy Expulsion Vulnerable to Attack?

Garcia v. Garcia (In re Garcia), 494 B.R. 799 (Bankr. E.D. N.Y. 2013) – Prior to bankruptcy, a chapter 11 debtor who had been a member of two limited liability companies was expelled by the other members on the basis that he … Continue reading

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UCC Financing Statements: Words to the Wise — Do Not Allow an Active UCC to Lapse

Highland Constr. Mgmt. Services, LP v Wells Fargo, N.A. (In re Highland Constr. Mgmt. Services LP), 497 B.R. 829 (Bankr. E.D. Va. 2013) – This opinion opens with a riddle:  “When is a financing statement that is no longer effective, still … Continue reading

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