Unrecorded Mortgage Assignment

[eloxley]

What is the name of your state? Ohio

(This was also posted in Bankruptcy section)

Scenario:

Debtors obtain mortgage to refinance in 12/04 with Bank A. Bank A records mortgage with county. In 1/05, Bank A sells mortgage to Bank B. In 2/06, Debtors file Chapter 13 and are confirmed in 5/06, with mortgage to be paid outside the plan as well as mortgage arrears to Bank B to be paid within the plan. Bank B filed claim as secured priority and attached copy of Debtor's mortgage to Bank A as proof of claim, as well as notice that proof of assignment to Bank B could not be located.

In 4/07, Debtors become aware that Bank B never filed notice of assignment with the county, and Bank A is still the only lienholder.

Question:

If Bank A sold the mortgage to Bank B, and Bank B never recorded it, can Bank B have the perfected lien required to file a claim as a priority secured creditor? While there may still be a valid lien in place, isn't it actually still held by Bank A, who was obviously unable to file a claim as it had already sold the note? Wouldn't Bank B then qualify as an unsecured creditor and thus receive the same percentage as other unsecured creditors inside the plan?

Any and all loopholes welcome....!

[moburkes]

Duplicate post. They will be read by the same people.

[eloxley]

I'm aware it was a duplicate post, which is why I stated it was also under Bankruptcy. I don't read every section, and wouldn't expect others to either.

[moburkes]

Originally Posted by eloxley

I'm aware it was a duplicate post, which is why I stated it was also under Bankruptcy. I don't read every section, and wouldn't expect others to either.

The duplicate post was so that people who respond will all respond on 1 post.

[HomeGuru]

Originally Posted by moburkes

The duplicate post was so that people who respond will all respond on 1 post.

**A: read my response in the BK forum.