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No More Gap or Corrective Assignments in the State of Massachusetts

Mortgage Investor and Servicer Alert!

Based on the latest court ruling, Massachusetts will no longer accept corrective or gap assignments. In a recent opinion from the Federal District Court of Massachusetts, in O'Brien V. Wilmington Trust N.A., 506 F. Supp. 3d 82 (2020), the court determined that two assignments recorded by parties not in title at the time of the assignment were void ab initio (to be treated as invalid from the outset) and could not be cured, and that any purported gap assignment intended to be retroactive between the prior assignments was also void. Law firms are currently not taking any orders for gap assignment preparation.

DocSolutionUSA offers a few curative options for investors and servicers to fix the chain. The obvious one is obtaining the assignment from the party that would be required to fix the chain. The most complex method is preparing a declaratory judgment action for cases where it's not feasible to prepare the assignment by a required lender.

Please reach out to ProTitleUSA at info@protitleusa.com to find out more.