On the matter of standing, this is a technical question. You filed BK 11; your main creditor filed a Motion for relief of Stay, which you are now disputing in BK court. You have learned that your creditor has sold the debt, so you are arguing that there is no relationship (privity of contract?) between the parties. Based on your representations, I would have to agree with you. Your creditor has no longer standing because the creditor has sold the debt to another purchaser. The new purchaser has standing but nit the old. So, how come you are still fighting the old creditor?
Maybe it has something to do with the fact that you are being sued by the foreclosure trustee?
Sometimes these institutions serve as the trustee for several financial institutions and sometimes they are represented by the same law firm. Also, I can bet you that your original creditor introduced an assignment clause within the debt instrument, naming the old Trustee as the new trustee for the subsequent purchaser of the debt. Nevertheless, if the proper papers were not filed in a timely basis to allow you an opportunity to examine the validity of the documents presented, you may request the Court to allow you some time for an examination of the documents. Normally, you will find that the Debt instruments were assigned to MERS, but often the Deed is not filed with the local recorder of deeds or signed by the purchasers of the Debt. Most importantly, MERS does not take title to the property. MERS is just a recording office, more like a clearinghouse, and it is most definitely not an owner of any deed. I believe that if you continue doing discovery on them and pushing your argument, the Court may agree with you on the matter of standing. Also, research the latest opinion from the 9th district specifically on point on this issue. I believe that it was published about a month ago either in Oregon or Washington.
Your second question has been answered by my colleagues. If you want the house, you owe the debt. I wish you the best of luck. I hope I was able to explain a rather difficult subject and I commend you for taking on the big finance companies all by yourself. Let me know if I can be of further assistance.
I am licensed only in California. This information is good only in California and it is not to be taken as legal advise in any other type of situation.
(1) An attorney would know what to do in this situation. (2) An attorney would understand why MERS is not misreporting anything and how badly you're misconstruing what you've seen. So why don't you hire one?
A person that files two bankruptcy cases in two years (and one a Chapter 11 pro se!) to save a house is probably a person that's very unlikely to actually be able to afford that house. I'm sorry.
Of course the mortgage debt is still "active". Chapter 7 doesn't make mortgages disappear, it only limits the ability to the lender to enforce their note against you.
I am unsure what you are trying to do here. If you discharged them in chapter 7 then they can foreclose. I assume you then filed a Chapter 11 to reorganize after Chapter 7. If the lender transfers the note and it is a valid transfer then they likely have standing. I would certainly wonder if you have a lawyer if you don't you need one.
Arguing the standing issue can be a winner, but most of the time it is a losing issue. If the note is endorsed in blank then any holder can enforce the note. Almost all mortgages allow for the transfer of the note and mortgage as well as a servicing agreement that allows it to change with notice to the borrower. The big issue is whether you can reorganize and repay the mortgage standing may work for short time or not, but if you cannot file a feasible reorganization plan the case will still get dismissed.
The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Illinois. Responses are answers to general legal questions and the receiver of such question should consult a local attorney for specific answers to questions.