Monday, September 12, 2011

NY Bankruptcy Judge To Foreclosure-Desirous Bankster: 'Hit The Road!' Lift Stay Motion Denied Despite Lack Of Objection By Debtor, Chapter 7 Trustee

From a recent ruling by a U.S. Bankruptcy Court (Southern District, NY):

  • [T]he issues discussed in this Opinion are neither novel nor complex, but highlight a well-publicized and persistent problem with inadequate mortgage foreclosure documentation.

  • The failure to properly document the transfer of the note and mortgage raises the question whether the movant has standing to seek relief—here, an order vacating the automatic stay, but, if successful here, then a judgment of foreclosure in state court.

  • Neither the Debtor's counsel nor the Chapter 7 trustee filed an objection to the Motion.

  • But the lack of objection does not relieve U.S. Bank from the burden of establishing its right to relief. The Court denies the Motion because U.S. Bank has not established its standing for stay relief.

For the entire ruling, and the court's analysis and reasoning, see In re Lippold, Case No. 11-12300 (MG) (Bankr. S.D. N.Y. September 6, 2011).

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