New Vision Realty Trustee Seeks Determination – Who Has a Superior Lien?
September 24, 2021, Northern District of Georgia – Gregory Hays, as Chapter 7 Trustee for the bankruptcy estate of New Vision Realty & Investments, Inc. (“Debtor”) prosecutes Normandy Capital Trust for return of real property under Section 544 (a)(3) of the Bankruptcy Code.
The debtor was the sole owner of the record of real property in Georgia. Allegedly, the Debtor executed a security deed in favor of Patch of Land Lending, LLC, conveying the property to secure a debt in the original principal amount of $130,000.00. The security deed was allegedly assigned to Normandy Capital Trust later via an assignment recorded in the Real Estate Records.
The Trustee argues that, as a hypothetical bona fide purchaser of real property, he has a superior claim in the property than Defendant. Accordingly, the Trustee seeks to determine the validity, extent, or priority of Defendant’s lien and argues that Defendant’s security interest in the property is “unperfected”, “unenforceable”, and “invalid” and that any timely filed claim of Defendant can only be allowed as a “non-priority unsecured claim”. As alleged by the Trustee, the security deed is also “patently defective” because neither it was attested to by an official witness nor by two witnesses as required by O.C.G.A. § 44 14 61.