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Chain of titile question in foreclosure procedings.Is the chain broken or correct in my question below.

Albany, NY |

In 2006 we had a mortgage with Novastar mortage inc which was done thru mers as there Nominee.Two years later Saxon mortgage services bought Novastar as they went out of bussiness.I think saxon is out of bussiness today also.So saxon assumed novastars loan with us and we started payments to saxon at that time.In 2009 we reset the mortgage again with HFC and they paid off saxon mortgage in full and we had a new loan with HFC.
So looking at the county papers & mortgage papers I see where the satisfaction of mortgage is filed under Novastar only as requested by saxon, and it also said this mortgage has not been assigned .I also see where HFC paid Saxon servises ,not Novastar or the satisfaction would be in Saxon's name not Nova star. So Novastar never transferred the note to saxon or HFC

Hfc is the one foreclosing on us .Is the chain of title broken here as It was never assigned by Novastar to Saxon services or to HFC ,but hfc paid off saxon and then filed a satisfaction in Novastars name only.It seems mers filed the satisfactions as nomineee for Novastar,but didn't give permission or assingment to HFC as there's no record of it at the county.In the mortgage folder there a notice of payment which we signed saying saxon was paid in full but I don't see any assigment papers from novastart to saxon or saxon to HFC or for that matter Novastar to HFC.It seems mers stopped at novastar as nominee or did saxon automically become nominee with mers when they bought Novastar.This way saxon was really novastar and could give the loan to HFC and if thats true where's the Mers assignment from them to HFC.In the silverberg case assigment has to be done to foreclose and no assigment papers were attached to the note in foreclosure from anyone.Maybe they don't have real transfer here.

Attorney Answers 3


I recommend that you speak to a NY real estate attorney who can research your chain of title issues, and can advise you on your real estate options and potential liability.

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Although it is the preferred procedure to record mortgage assignments, it is not always properly done. This does not necessarily mean that HFC is not the owner of your loan, and you should not be complacent and assume that this is the solution to the predicament you are in. It would be prudent to have an attorney review your loan documents as well as whatever documents were provided to you throughout the course of the foreclosure case.

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Since you said that Saxon purchased Nova, Saxon would assume the obligations of Nova under a seperate agreement, and you would continue making payments to Saxon. This would not be a purchase of a note where an assignment would be required. When you say "reset" the loan, I believe you mean it was refinanced since you mentioned that HFC paid off Saxon. This means that Saxon is out of the picture and you had a new loan procured with HFC (unless you did a CEMA which is a consolidation). What you need to do is make certain HFC is the correct holder of the note, and there is no break in the Chain of Title. You have to carefully review the Complaint in your case to determine if there is proper standing. In any case, it should have been raised as an affirmative defense in your Answer. It is a very good idea to seek the advise of counsel in any foreclosure lawsuit where you are a defendant in jeopardy of losing your home- especially if you would like to keep the property.

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