Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 11

Marian Gass executed a note and mortgage in favor of Option One Mortgage Corporation. The note was negotiated and ultimately EMC Mortgage Corporation (EMC) began foreclosure proceedings after Gass missed payments. Gass challenged EMC's standing to pursue foreclosure on the basis that the original note was "robo-signed" by individuals without authority, and that EMC never actually had possession of the note. Further, the evidence of indorsement consisted of an alleged allonge, which was obviously not proven to be attached to the note which was not produced in court. Did EMC have the right to enforce the note?