Indiana Debtor May Not Challenge Loan Assignment

In a case recently decided in Indiana, a grantor of a mortgage sought relief from a judgment entered against the grantor foreclosing the mortgage. The basis of the grantor’s motion was to contest an assignment of the mortgage from the original creditor to the current creditor that obtained the judgment. The debtor contended that if the assignment to the creditor was invalid, then the judgment obtained by the creditor was improper. The court acknowledged that Indiana courts had not previously addressed this question, and noted that other courts had determined that such a challenge was not available to a debtor. Therefore, the Indiana court determined that a debtor does not have the right to challenge an allegedly defective loan assignment from one creditor to another.