Mortgage Assignments: Assignment of a Mortgage Without the Underlying Note is A Nullity

Oh, how naive people are. These transactions are not traditional mortgage loans.

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In re Cornerstone Homes, Inc., 544 B.R. 492 (Bankr. W.D. N.Y. 2015)

A chapter 11 trustee sought a judgment that a series of mortgages were unenforceable as a matter of law because the written assignments transferring them to the current mortgagees were insufficient. If the trustee prevailed, the mortgage loans would be transformed from secured to unsecured claims.

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