Wash. Mut. Bank F.A. v. Sommerville (In re Sommerville)

Pre 2005-Act: 
Pre 2005-Act
Ruling: 
Lien holder was barred by automatic stay from correcting the lien holder's mistaken release of debtor since filing established the trustee as a hypothetical lien creditor senior to the lien holder.
Procedural posture: 
Plaintiff, a servicer for a prior lien holder, alleged that it filed a corporate deed of release in error and that defendant debtor's note has not been paid in full. The servicer sought to have the deed of release set aside and the deed of trust reinstated. The debtor and defendant trustee opposed reinstatement of the deed of trust as violating 11 U.S.C. § 544(a). The parties filed cross-motions for summary judgment.
Issue: 
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