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....!
(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....!
