Heritage Loan & Investment Co. v. Geremia (In re Norato)

ARTHUR N. VOTOLATO, Jr., Bankruptcy Judge.

Heard on Plaintiff’s complaint for relief from the automatic stay1 in order to foreclose on a mortgage. The Defendants allege that the mortgage deed and promissory note held by the Plaintiff were executed and obtained by the Plaintiff as a result of fraud and misrepresentation. The Defendants also raise the equitable defense of lach-es.

The evidence in this case is sharply conflicting. The Plaintiff’s version of the events, as related through the testimony of the Plaintiff’s Chairman of the Board, Joseph Mollicone, Sr., is as follows: Alfred Norato was…