IN
THE
UNITED STATES
DISTRICT
COURT
FOR
THE
DISTRICT
OF
OREGON
BANK
OF
NEW
YORK
MELLON,
Appellant,
v.
NICOLAS LEE
WATT
& PATRICIA
MOUDY
WATT,
Appellees.
Crystal
S.
Chase
Oren
B.
Haker
Stoel
Rives
LLP
900
S.W.
5th
Avenue,
Suite
2600
Portland,
Oregon
97204
Attorneys
for
appellant
Bank
of
New
York
Mellon
Michael
D.
O'Brien
Michael
D.
O'Brien
&
Associates
PC
12909
S.W.
68th
Parkway,
Suite
160
Portland,
Oregon
97223
Attorney
for
appellees
Nicolas
and
Patricia
Watt
Britta
E.
Warren
Black
Helterline,
LLP
805
S.W.
Broadway,
Suite
1900
Portland,
Oregon
97205
Attorney
for
appellees
Meritage
Homeowners'
Association
C.
Anthony
Crnic
,
III
Case
No.
3:14-cv-02051-AA
OPINION
AND
ORDER
Klatt,
Augustine,
Sayer,
Treinen
&
Rastede,
PC
6th
Avenue,
Suite
1015
Des
Moines,
Iowa
50309
Attorney
for
amicus
curiae
American
Legal
and
Financial
Network
PAGE
1 - OPINION
AND
ORDER
Case 3:14-cv-02051-AA Document 31 Filed 04/22/15 Page 1 of 16
Case 14-31295-tmb13 Doc 74 Filed 04/29/15
AIKEN,
Chief
Judge:
Bank
of
New
York
Mellon,
as
trustee
for
certificate
holders
of
the
CWALT,
Inc.,
alternative
loan
trust
2006-0A21,
mortgage
pass-through
certificates
series
2006-0A21
("BNYM"),
appeals
the
bankruptcy
court's
confirmation
of
Nicolas
and
Patricia
Watt's
("debtors")
Chapter
13
plan.
For
the
reasons
set
forth
below,
the
bankruptcy
court's
decision
is
vacated
and
this
case
is
remanded
for
further
proceedings.
BACKGROUND
In
November
2006,
debtors
took
out
a
loan,
in
the
amount
of
$296,940,
to
purchase
a
second
residence
in
Newport,
Oregon
("Property"),
which
is
one
of
eighteen
townhouse
units
within
a
planned
community
that
is
subject
to
a
series
of
covenants
and
restrictions
enforced
by
Meritage
Homeowners'
Association
("Meritage").
Excerpt
of
Record
("ER")
19-48,
70.
Pursuant
to
this
transaction,
debtors
executed
a
promissory
note
("Note")
in
favor
of
Mortgage
Trust,
Inc.
("MTI").
ER
19-23,
39-48.
The
Note
was
secured
by
a
deed
of
trust
("DOT"),
which
lists
MTI
as
the
lender,
Western
Title
and
Escrow
as
the
trustee,
and
Mortgage
Electronic
Registration
Systems,
Inc.
("MERS"),
as
the
beneficiary.
ER
25-38.
The
DOT
was
duly
recorded
in
Lincoln
County,
Oregon.
ER
25.
In
April
2012,
MERS
assigned
MTI's
interest
in
the
DOT
to
BNYM.
ER
50.
This
assignment
was
recorded
in
the
official
records
of
Lincoln
County.
Id.
At
some
unspecified
time
in
2012,
debtors
stopped
making
the
requisite
loan
repayments,
thereby
materially
defaulting
under
the
Note
and
DOT,
such
that
BNYM
commenced
PAGE
2 - OPINION
AND
ORDER
Case 3:14-cv-02051-AA Document 31 Filed 04/22/15 Page 2 of 16
Case 14-31295-tmb13 Doc 74 Filed 04/29/15
