Mers Decisions

Case 10-45395

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UNITED STATES BANKRUPTCY COURT DISTRICT OF MASSACHUSETTS CENTRAL DIVISION ) ) ) ) ) ) )

In re: DAVID A MARRON and ROBIN H SOROKO-MARRON Debtors.

Chapter 7 Case No. 10-45395-MSH

MEMORANDUM OF DECISION ON MOTION FOR RELIEF FROM STAY Before me is the motion for relief from stay of HSBC Bank USA, National Association, as Indenture Trustee of the Fieldstone Mortgage Investment Trust, Series 2005-2 (“HSBC”) to which David M. Nickless, the Chapter 7 trustee of the debtors’ bankruptcy estate, has objected. HSBC seeks relief from the automatic stay provisions of § 362 of the Bankruptcy Code, 11 U.S.C. §§ 101-1532, to foreclose its mortgage on the debtors’ home. The trustee objects, arguing that the assignment from Mortgage Electronic Registration Systems, Inc. (“MERS”) by which HSBC acquired the mortgage was invalid and thus HSBC may not legally foreclose the mortgage. The trustee argues that since HSBC may not foreclose, it does not have standing to seek relief from the automatic stay. For the reasons discussed herein, I will overrule the trustee’s objection and grant HSBC relief from the automatic stay. Factual Background The relevant facts of this case are not in dispute. On July 29, 2005, co-debtor Robin H. Soroko-Marron executed and delivered to MERS a mortgage on her home at 25 Mears Farm Road, Haverhill, Massachusetts. The mortgage states, among other things, that MERS “is a separate corporation that is acting solely as nominee for Lender and Lender’s successors and assigns” and that “MERS is the mortgagee under this Security Instrument.” The mortgage defines “Lender” as 1

Case 10-45395

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Filed 06/29/11 Entered 06/29/11 13:15:53 Document Page 2 of 13

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Fieldstone Mortgage Company (“Fieldstone”). The mortgage includes the statutory power of sale under Mass. Gen. Laws. ch 183, § 21 which is invoked by reference to the statute...