Chase Manhattan Mortgage Corporation v. Shapiro
United States Court of Appeals for the Sixth Circuit
530 F.3d 458 (2008)
Relevant factsFree
Chase Manhattan Mortgage Corporation (creditor) disbursed funds to refinance debtor David Scott Lee's residential mortgage but did not record the new mortgage until 72 days later. Seventy-seven days after recording, Lee filed for bankruptcy. The bankruptcy trustee sought to avoid Chase's mortgage lien as a preferential transfer, and the matter reached the court of appeals.
IssueFree
Whether, under the bankruptcy code, a mortgage on real property is treated as a voidable preference if it was not perfected within the 10-day grace period provided by § 547(e).