Posted on Tuesday, April 14, 2009
Lenders are running into some of the following issues, much to borrower benefit:
The loan assignment documents are impropermeanign the loan was not correctly assigned to the trust.
The loan file itself may be incomplete.
There may be a conflict of itnerest between the servicer and the trust.
Also bankruptcy remote is not necessarily bankruptcy proof.
Independant directors may have liability for failing to vote for bankruptcy if doing so is in the borrowers best interest.