Germanie Fequiere executed and delivered a promissory note in the principal amount of $ 240,000 to BNC Mortgage. As security for the note, Fequiere executed and delivered a mortgage on real property. BNC indorsed the promissory note in blank. Later, Chase Home Finance, LLC, became the holder in due course of the note and holder of the mortgage. When Fequiere failed to make payments on the note, Chase sought to foreclose on the property. Fequiere asserted that Chase could not foreclose on the property because the mortgage on the property had not been properly transferred from BNC to Chase. Assuming that is true, does it mean that Chase, as holder of the negotiable note, can-not foreclose on the collateral (the property secured by the mortgage)? Explain your answer.

  • CreatedJune 18, 2014
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