Bankruptcy – Automatic Stay – Motion for Relief – Civil Practice — Party in Interest – Real Property – Mortgages – Assignment – Res Judicata

In re Jeter (Lawyers Weekly No. 004-001-11, 9 pp.) (Helen E. Burris, J.) S.C.B.

Holding: The debtors had ample opportunity to assert any issues regarding the secured creditor’s status or the authenticity of any transfers that led to The CIT Group’s claimed secured creditor position at the time of the confirmation of the debtors’ Chapter 13 plan. The debtors elected not to pursue any such issues; consequently, the debtors cannot claim well after confirmation of their plan that The CIT Group was not the proper party in interest.

Res judicata bars the debtors’ challenge to The CIT Group’s standing as a proper party in interest. Further proceedings are required to allow the debtors to refine any additional challenges to the standing of Wells Fargo Delaware Trust Co., N.A. as trustee for Vericrest Opportunity Loan Trust 2010-NPLI.

Wells Fargo is entitled to the benefits of the res judicata effect, assuming it can establish a post-confirmation transfer record of the note and mortgage originating from the time of confirmation.