A Massachusetts federal judge has upheld a bankruptcy court ruling allowing a trustee to treat a mortgage as an unsecured claim, which strips the mortgage holder of foreclosure rights, because of defective mortgage paperwork.
In a Nov. 17 order, District Court Judge Patti Saris affirmed a bankruptcy court order denying the plaintiffs’ request to send a question of law to the Supreme Judicial Court of Massachusetts. The case is Mortgage Electronic Registration Systems Inc. (MERS) v. Warren E. Agin, trustee.
The plaintiffs wanted the state high court’s take on whether the omission of a borrower’s name on an acknowledgement form, which a notary public uses to confirm the identity of the borrower, is a “material defect” that voids the mortgage.
In Massachusetts, deeds or mortgages recorded at a county registry of deeds must have a properly executed acknowledgment form. Read more about MERS…
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