The inability to prove ownership of a mortgage could result in the dismissal of the action.  In order for a foreclosure to proceed, there needs to be a valid assignment of the note.  This assignment indicates that the mortgage debt and the mortgage securing it have been transferred to another party.  The assignees of the note and mortgage, as well as the sole owner, are considered to be the real parties of interest.  Once the assignee becomes a real party, they may be named to file a foreclosure action in a mortgage.

When an assignment occurs, the mortgage assignee can only take the interest that the assignor originally had in the instrument.  The rationale behind this originated from the courts of equity.  Technically, the assignor acquires equity and is bound to submit to the assertion of the prior equitable rights of third parties.  This results in a recognition of the rights of other parties that the assignment may be subject to in a given situation.

Invalid assignments can occur when there is a transfer of an assignment that does not contain an interest in the property.  This situation arises when there is an error in the completion of documents or when a transfer of rights that are not fully vested in the assignors are assigned.  For more information regarding Honolulu Hawaii foreclosure and Honolulu Hawaii foreclosure defense, contact  Greg Dunn, Honolulu Hawaii's premier foreclosure defense attorney.