In Aurora Loan Servs., LLC v. Taylor, 2015 NY Slip Op 04872 (Jun. 11, 2015), the New York Court of Appeals held that ownership of the Note, not the Deed of Trust, provides standing to sue.
There was a clear showing of the chain of ownership of the note to Deutsche Bank, who subsequently appointed Aurora Loan Services (“Aurora”) as its attorney-in-fact. “[T]he note, and not the mortgage, is the dispositive instrument that conveys standing to foreclose under New York law. In the current case, the note was transferred to Aurora before the commencement of the foreclosure action — that is what matters.” Thus, Aurora had standing to commence the foreclosure action.
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Rob Bodine is a Virginia attorney focusing his practice on real estate and intellectual property law. He’s currently Virginia counsel with First Class Title, Inc., a Maryland title insurance and settlement company. Rob is also a licensed title insurance agent in Florida, Maryland, Pennsylvania, and Virginia.