Q: Is a mortgage assignment defective if it only mentions the original loan which has been assumed and modified?
My friend Lisa was the sole beneficiary of her mother Barbara's trust. The original loan was a $100k HELOC between Santander and Barbara in 2010. Barbara died in 2012 and Lisa became the owner. In 2017 Lisa was able to assume and modify Barbara's original loan with Santander and the new principal balance was $126k. The first assignment was in 2020 from Santander to US Bank trust but the assignment is in Barbara's name and references Barbara's loan by registry book and page. Neither Lisa nor any mention of her loan exist in that assignment. the second assignment was in 2022 from US Bank trust to another US Bank trust and the same exact thing again no Lisa or her loan. In 2024 the bank initiates foreclosure but suddenly Lisa and her loan exist. Everything related to the foreclosure lists Barbara's loan as affected by a modification loan between Lisa and Santander and references the proper book and page. Would that be a defective assignment that would allow the auction to reversed?
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A: If the Bank has the actual mortgage and note, then it makes no difference if there is a recorded assignment or not. If the note is in default, foreclosure will ensue.
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