principal amount of $240,000 to BNC Mortgage. As security for that note, Fequiere executed and delivered a mortgage on real property. BNC indorsed the promissory note in blank. Several years later, when Fequiere failed to make payments on the note, Chase Home Finance LLC - the holder in due course of the note and holder of the mortgage - moved to foreclose on the property. In defense, Fequiere asserted that Chase could not foreclose on the property because the mortgage on the property had not been properly transferred from BNC to Chase. Assuming that is true, does it mean that Chase, as holder of the negotiable note cannot foreclose on the collateral (the property secured by the mortgage)? Explain your answer. - If you're not going to pay on something you owe, someone is going to come asking about it. I may be so wrong, but I think Chase would still be able to foreclose on the property. $240,000 is a lot of money and Fequiere wrote a promissory note promising to pay it. The question says several years went by and Fequiere never made any payments. If he knew that the mortgage hadn't be transferred over, why did he wait until they asked? Since Chase is the holder in due course they have rights to protect themselves in situations like this