Skip to main content



The Chase Manhattan Bank v. Green

A-1556-06T2 (N.J. Super. App. Div. 2008) (Unpublished)

MORTGAGES; ASSIGNMENT — A mortgage assignment need not be recorded to be effective; all it requires is identification of the assignee, the assignor, and the property.

Mortgagees had executed a promissory note and mortgage, each containing a provision that permitted the note holder, following a default, after a thirty day notice, to accelerate the entire balance of principal and interest due under the note. On the same day that the mortgagees executed the note and mortgage, the mortgagor assigned the note and mortgage to another lender. The recording of this assignment referenced the correct loan number and property encumbered, but cited the wrong recording information for the mortgage. A later corrective assignment of mortgage in favor of the current mortgagor/assignee addressed this error. The mortgagees went into default of their loan obligation and the mortgagor filed for foreclosure. The lower court corrected the land records to reflect the correct page number of the original assignment. It also found a default, but gave the mortgagees an opportunity to pay all outstanding sums due to cure the default. Following no effective response, the lower court ultimately authorized the Foreclosure Unit to proceed with an entry of final judgment.

The Appellate Division affirmed the lower court judgment. The Court addressed the argument presented by the mortgagees that the original assignment was not made to the claimed mortgagor/assignee, but to another company. The Court responded that the other company only acquired the servicing rights, and not the actual mortgage. It was satisfied that the current servicer of the mortgage acquired its rights lawfully, and that the current mortgagor was the proper assignee to prosecute the foreclosure action. The Court held that an assignment need not be recorded to be effective. All a valid assignment requires is identification of the assignee, the assignor, and the property. In sum, the Court accepted the lower court’s conclusions that the mortgagees defaulted by failing to make a required payment, and that the mortgagor was entitled to accelerate the entire balance of principal and interest due and proceed with the foreclosure action.


MEISLIK & MEISLIK
66 Park Street • Montclair, New Jersey 07042
tel: 973-783-3000 • fax: 973-744-5757 • info@meislik.com