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Tax Liens & Mortgage Notes

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Susan Parker
  • Yucca Valley, CA
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Notes as collateral if property securing the note is in default

Susan Parker
  • Yucca Valley, CA
Posted May 13 2017, 00:45

I have a question regarding a note used as collateral, by a lender. The lender endorsed the note making it payable to the lender's bank. Additionally, a collateral assignment was given for the property the note was owed on. The note's lender then foreclosed on the security property but the note was still in the possession and made payable to the Bank the lender had borrowed from ... in California WHO is entitled to enforce the note? The Bank who holds possession of the note endorsed to

Them? Or the lender who is owed money on the note? A complete and recorded assignment of beneficial interest for collateral was recorded with the county. It is the note though which bothers me...

CUCC section 3 seems to support the Bank having entitlement to enforce because the note isn't their possession and made payable to them...HOWEVER CUCC section 9 seems to cover trust deeds as collateral. Can anyone help me find the clear legal answer? Thank you so much.

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