August 26th, 2009 by Reed Allmand 
In the bankruptcy case of Kurak, Debra A.; In re (Agin, Trustee, v. South Point Inc.), a mortgage was ruled invalid by the bankruptcy court because it was materially altered prior to the filing.
The details of the bankruptcy case:
“The Chapter 7 debtor scheduled an interest in real property that was subject to a lien for which she had no contractual liability. The lienholder filed a motion for stay relief. A copy of the mortgage was attached to the motion. The debtor was not named as a borrower in the mortgage. The debtor’s signature appeared on the last page above the word “witness” and the word “borrower” crossed out. The lender subsequently produced a recorded mortgage that showed the debtor as the borrower. The court found that the mortgage was materially altered prior to being recorded by adding the debtor’s name as borrower on the first page of the mortgage. The court said it could not tell when or why the word “borrower” was crossed out on the signature page and replaced with the word “witness.”
As we’ve mentioned several times, mortgage lienholders are required to produce documents that adhere to the letter of the law. There have been several cases where mortgage lienholders have violated the law by having mortgage documents that were “irregular.” The bankruptcy court has the power to enforce the laws that govern these documents, while an individual debtor does debtor does not have the leverage. If you have irregularities on your mortgage documents you must immediately speak to your bankruptcy attorney about it. Those irregularities or “mistakes” may be costing you money.
Consumer Bankruptcy News, Volume 18, page 8
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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