NPN BK13: Seller missing original Security Deed GA??

Question

I am very skeptical about this NPN in BK13. First off it was originated in 2006 and assigned from MERS as the nominee. I see evidence tht note was sold in pool during the time of mortgage back securities. Secondly seller missing a few documents like the allonge to one of the AOM. There's a true and exact copy of Security Deed but NO original. NPN is in GA. Are the missing docs really needed if they are recorded??

Jeff B. · Answer

Apologies to the OP; I misunderstood the MFR.

Queen Keoka · Answer

@Dion DePaoli. These statements sum up the consent order:

You’ve fallen behind on your mortgage payments after your Chapter 13 case has been filed. The lender has filed a Motion to Lift Stay. Will you lose your home? Not necessarily, thanks to a Consent Order.

In many cases, the mortgage lender will give you one more change to get caught up. The way this is done is through a Consent Order. The Consent Order usually provides that you will:

(1) Resume making your regular monthly mortgage payments;(2) Pay the post-petition arrearages (the payments that you missed after your case was filed) over 3-6 months; and(3) Pay the mortgage company’s attorney’s fees (usually $500-$800) during this same time period.

So long as these payments are made, you should be fine. If not, the Consent Order will provide that the lender can proceed with the foreclosure.

THANKS FOR YOUR ASSISTANCE!!! You have definitely relieved most skepticism and helped me become a bit more comfortable with this process.

Dion DePaoli · Answer

@Queen KeokaIf the MFR was granted then as the Mortgagee in succession you are relieved of the automatic stay.  You will not need to file a new one in the future.  You will still have to file a Transfer of Claim to give notice to the BK Trustee of the change of Mortgagee.  If the borrower remains in default you can proceed with foreclosure.  Obviously, just make sure the MFR was granted.It's not clear what the consent order was pertaining to.  So, can't comment much there.It is good the borrower managed to catch up the property taxes.  Sounds like there is a chance to set up a repayment plan with the borrower to catch the back payments up.

Dion DePaoli · Answer

That is not correct.  The MFR is a request to be relieved of the injunction on collections.  The property is a part of the debtor's estate until the property is properly foreclosed.  An MFR does not grant or give the lender title to the property.  It simply allows them to pursue the available remedies within the security instrument and note.

Queen Keoka · Answer

@Dion DePaoli I have been working on this note for almost a month finally in closing. From my DD going over BK docket and speaking with trustee and current lender/FCI this mortgage is a year behind and taxes just got caught up. Current lender received consent order in October. So everything is taking course now borrower started making payments again and trustee has the total to pay arrearage.

Queen Keoka · Answer

The current lender filed MFR and I'm in closing to purchase this note on the FCI exchange. I'm assuming all tht was filed transfer to me and I shouldn't have to file a MFR again right??

Jeff B. · Answer

YOU FILE??   Once motion is granted, the BK is no longer of concern.

You're Closing - - on what?

Queen Keoka · Answer

The MFR was granted and borrower started making payments again this month. If payments stop again can I move forward with foreclosure or do I have to file MFR again to foreclose?? I'm in closing now and after I approve the collateral file FCI says they will release attorney files and I could ask any questions.

Jeff B. · Answer

MFR: Motion For Relief would separate the property from the BK, so it's in the hands of the lender.

Dion DePaoli · Answer

@Queen Keoka those MERS stories are probably pretty old and dated.  There is not much controversy surrounding MERS.  A couple years ago MERS updated its rules which force Mortgagee's to remove loans from the MERS system in the event of a default.  Having a wet ink security deed is not that big of a deal.  Much of the utility of the document is achieved at recording.  So having the wet ink laying around in file doesn't mean or do much.  At the start of any BK a protective order is issued which is the order of stay.  The previous Mortgagee filed a Motion For Relief of Order of Stay.  That likely comes on the premise the borrower is not making their required post petition payments as the BK plan warrants.  If the MFR is granted, then you will still have to foreclose, it does not mean the property becomes REO.