Relief from Stay denied after mortgage company can’t produce the note.
After the debtor filed a chapter 7 bankruptcy, his mortgage company file a motion for relief in order to start foreclosure proceedings. The court denied the motion for relief because the mortgage company could not show which rights the company has in the note and the failure of properly document the transfer of both the note and the mortgage raised the questions whether the bank had standing to file the motion for relief. The Mortgage company could not show that they actually received the note or was in possession of it. (In re Lippold, 2011 Bankr. Lexis 3282)