1. It isn’t illegal or prejudicial to a plaintiff trustee’s case for it to have acquired rights or be assigned a mortgage AFTER a borrower is in default — but it DOES raise issues of fact that must be heard by the Court. Since the Mortgage went into default there are several possibilities:
(a) under the pooling and service agreement the original lender might be the responsible party and unless that original lender is STILL in privity with the CURRENT (was there a substitution?) trustee, the trustee might not be getting instructions from the real beneficiary.
(b) under the assignment(s) the real beneficiary might have changed as well.
(c) Remember that there are at least three Trustees in securitization — the Trustee on the Deed of Trust, the Trustee of the Pooled Assets, and the Trustee for the owners of certificates of mortgage backed securities. There are also substitutions of…
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