Reject 2nd Mortgage - Not Recorded Correctly?

[UpsideDownMI]

I have been going thru all of my mortgage docs in prep for bk, and in the process have discovered that my 2nd mortgage on my primary residence may have not been recorded with the register of deeds correctly. My wifes name is not included anywhere in the mortgage docs, as I get the mortgage in my name only. However the register of deeds shows that my wife is grantor to Countrywide for this same mortgage.

Could this possibly give me a case to reject this mortgage in a chapter 7 for not being properly recorded? I have read a few cases in which mortgages where not properly recorded and were removed in a chapter 7 and was wondering if anyone had any thoughts on this matter.

[hereforinfo]

I think you are misreading what you saw. It sounds to me like your wife is not on the mortgage but her name is on the deed to the house, right?

There are two parts to what we call a mortgage: One is the NOTE (the actual loan). That is the paper you signed which says you promise to pay back X amount and at what terms. This is what is in your name only.

Then there is the actual MORTGAGE, which is simply the lender's security interest in the property. At closing, the lender requires anyone whose name is on the title/deed to sign the mortgage, otherwise it makes it difficult to foreclose on the whole property. Your wife likely signed that document at closing. This does not mean she is liable for the loan or that the loan has her name on it. She is not on the loan, but is on the mortgage instrument simply because she is on the deed. Of course the recorded document is going to show her as being "granted" a deed, whether she's on the actual loan or not.