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Andrea, Esq.
Andrea, Esq., Attorney
Category: Legal
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Experience:  25 yrs. experience in family law, estates, real estate, business law, criminal defense, immigration, and employment law.
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My family Refinance house from the First bank Of Arizona.

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My family Refinance house from the First bank Of Arizona. they were shut down by FCC I 2007 then GMAC bought my loan from them and which they never recorded Cooperate deed of assignment with county land record. Last year GMAC went bankrupt now there is a new lender who is claiming to be my lender. I check with Montgomery county court land record and the last deed of trust is recorded is in 2005 which was by the first bank Of Arizona . since there is a broken chain of assignment can lender foreclosed my house. If No what action should I take to defend? Thanks

Hi, my name is XXXXX XXXXX I will be assisting you.

 

In order for a lender to foreclose on a mortgage or Deed of Trust, the lender must hold the original Note, the original Mortgage (Or, Deed of Trust) and if he is not the original lender, then he must also hold an Assignment of Mortgage (Or, Deed of Trust).

 

A borrower has the right to contest a foreclosure by asking the foreclosing lender to produce these documents. The borrower has the right to ask for the production of these documents at any time, even if the lender is not foreclosing.

 

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Customer: replied 3 years ago.

I check with county land record and assignment of deed is not recorded from First national bank of Arizona to GMAC and now new lenders claim that they have my loan which again deed of assignment is not recorded with land records.


 

An Assignment of Deed of Trust does not have to be recorded to be legal and enforceable. The recording is meant as protection for the new lender in case the old lender assigned to someone else after assigning it to the first Assignee. So, you can have a legally enforceable Deed of Trust without recording the Assignment. In order to be sure that your lender can foreclose on a Deed of Trust, the borrower has a right to ask them to produce the Assignment.

 

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Andrea, Esq. and 7 other Legal Specialists are ready to help you
Customer: replied 3 years ago.


So what is a broken chain of assignment? how that impact on foreclosure proceedings?

A broken chain of assignment is when the foreclosing lender cannot produce the Assignment to him.

 

For example, A Deed of Trust is signed by a borrower and given to "L-1". L-1 assigns the Deed of Trust to "L-2" who then assigns it to "L-3" who then assigns it to "L-4".

 

A valid Assignment will recite all of the previous Assignments and will read something like this,

 

"On this 22nd day of August, 2013, L-3 hereby assigns to L-4, all of its right, title, and interest in and to a certain Deed of Trust executed by B to L-1 on the 9th day of November, 2009 and which Deed of Trust was assigned by L-1 to L-2 by a certain Assignment of Deed of Trust on the 19th day of December, 2010, and which Deed of Trust was assigned by L-2 to L-3 by Assignment of Deed of Trust dated the 10th of January, 2013.

 

A "break in the chain of assignments" is when the above clause skips an assignment and goes from Lender-1 to Lender-3 and nothing is recited on how L-3 got the assignment which he wants to assign to L-4.

 

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Thank you for allowing me the opportunity to assist you,

 

ANDREA

 

 

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