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§ 544(a)(3)

Richardson v. Citimortgage Inc. (In re Emerson)

Ruling
Summary judgment denying avoidance of improperly released mortgage affirmed.
Procedural posture

Plaintiff, a Chapter 7 trustee, challenged an order from the United States Bankruptcy Court for the Western District of Michigan, which granted summary judgment to defendant creditor and denied summary judgment to the trustee on his avoidance action pursuant to 11 U.S.C.S. § 544(a)(3).

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on October 07, 2011 , LexisNexis #1111-027

Tibble v. Wells Fargo Bank (In re Hudson)

Ruling
Mortgage could be avoided due to incorrect property description.
Procedural posture

Plaintiff Chapter 7 trustee sought to avoid pursuant to 11 U.S.C.S. § 544(a)(3) a mortgage asserted by defendant bank on the debtor's property.

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Consumer opinion summary, case decided on August 16, 2011 , LexisNexis #0911-054

Goering v. Green Tree Fin. Servs. Corp. (In re Shaw)

Ruling
Trustee could recover sale price of property that had been encumbered by a defective lien from lienholder who obtained property in preferential transfer.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendant lienholder in which plaintiff sought to avoid a first mortgage lien held by defendant. The parties filed motions for summary judgment.

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Consumer opinion summary, case decided on May 02, 2011 , LexisNexis #0611-022

Terlecky v. Crevecor Mortg. Inc. (In re Trahan)

Ruling
Improperly acknowledged mortgage could be avoided.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendants, a mortgage company and a mortgage services company, seeking a determination that a mortgage which two debtors signed before they declared bankruptcy was avoidable under 11 U.S.C.S. § 544(a)(3). The mortgage company asked the court to certify a question of law to the Ohio Supreme Court, and the trustee moved for summary judgment on his claim.

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Consumer opinion summary, case decided on March 24, 2011 , LexisNexis #0411-089

Rhiel v. Huntington Natl Bank (In re Phalen)

Ruling
Defectively executed mortgage could be avoided.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant mortgage lender seeking to avoid lender's asserted mortgage against a bankruptcy debtor's one-half interest in real property pursuant to 11 U.S.C.S. § 544(a)(3) because the mortgage was defectively executed. The trustee moved for summary judgment.

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Consumer opinion summary, case decided on March 04, 2011 , LexisNexis #0311-127

In re Munoz

Ruling
Debtor could not set aside prepetition foreclosure sale.
Procedural posture

Chapter 13 debtors sought to set aside a pre-petition foreclosure sale of their real property by defendant lender to defendant foreclosure sale purchaser through 11 U.S.C.S. § 522(h) by using the "strong-arm power" of 11 U.S.C.S. § 544(a)(3), as an unauthorized post-petition transfer under 11 U.S.C.S. § 549. Alternatively, the debtors sought to recover damages for violation of the automatic stay under 11 U.S.C.S. § 362(k)(1).

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Consumer opinion summary, case decided on February 22, 2011 , LexisNexis #0311-087

AFB&T v. Sullivan (In re Sullivan)

Ruling
Security interest in debtor's residence conveyed by debtor in capacity as president of his debtor company could be avoided where debtor was acting as debtor in possession.
Procedural posture

Lender filed an adversary proceeding against chapter 11 debtor, seeking a judgment declaring that it had a valid, perfected security interest in the debtor's residence or, in the alternative, the reformation of a deed. The debtor filed a motion to dismiss the lender's complaint, claiming that a deed he executed in his capacity as president of a company he owned did not convey a security interest in his residence to the lender.

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Consumer opinion summary, case decided on November 26, 2010 , LexisNexis #0211-088

Dobin v. Sheehan (In re Eight Bulls LP)

Ruling
Trustee could avoid deeds recorded nearly one year after petition date.
Procedural posture

Plaintiff Chapter 7 trustee filed a motion for summary judgment in an adversary proceeding against defendants, who claimed an interest in debtor's property, seeking to avoid defendants' interests pursuant to 11 U.S.C.S. § 544.

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Commercial opinion summary, case decided on November 18, 2010 , LexisNexis #1210-050

Muse v. Flagstar Bank (In re Muse)

Ruling
Scheduled prepetition mortgage not recorded until day before case was reopened could be avoided.
Procedural posture

In a adversary proceeding in a reopened chapter 7 bankruptcy case, the trustee filed a motion for summary judgment, endeavoring to avoid the mortgage lien of defendant bank. The mortgage had been listed in the debtor's bankruptcy schedules, but the mortgage, which was made several years before the debtor filed for bankruptcy, had not been recorded until the day the motion trustee's motion to reopen was granted.

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Consumer opinion summary, case decided on November 02, 2010 , LexisNexis #1210-089

Agin v. Mortgage Elec. Registration Sys. (In re Bower)

Ruling
Mortgage could be avoided due to defective acknowledgement.
Procedural posture

Chapter 7 trustee sought summary judgment on its complaint per 11 U.S.C.S. § 544(a)(3) against defendants, a mortgagee and its assignee, to avoid a mortgage in their favor on the ground that the omission of debtor's name from the acknowledgement of the mortgage was a material defect under Massachusetts law, including Mass. Gen. Laws Ann. ch. 183, § 29, rendering it avoidable per § 544. Defendants opposed summary judgment.

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Consumer opinion summary, case decided on October 13, 2010 , LexisNexis #1110-091