The debtors do not have standing to challenge the assignment of their mortgage, so that count of their complaint was dismissed. The dispute over payments made to a junior lienholder after the senior lien had been stripped off (but which was later reinstated) is not a matter for the bankruptcy court to decide. However, the debtors did incur additional expenses in attempting to ascertain the validity and priority of the liens, and they may go forward on that count of their complaint.
Date:
Monday, July 8, 2013
Judge:
Judge Timothy J. Mahoney (Retired)