A mortgage that is obtained by fraud is not enforceable. In November 2011, a court found that the fair market value of the subject commercial property was $500,000 and that the defendant owed the plaintiff, U.S. Bank, $1.32 million. The court granted judgment of strict foreclosure to the plaintiff bank. In March 2012, an attorney for 3060 Main Street LLC claimed that his client held a mortgage lien in the amount of $140,000. Although the plaintiff bank's attorney responded that 3060 Main Street's mortgage lien was extinguished in the U.S. Bank foreclosure, in which 3060 Main Street was named as a party, 3060 Main Street proceeded to file a notice of lis pendens on the land records. U.S. Bank applied to discharge 3060 Main Street's mortgage lien. U.S. Bank argued that the purported sale of the property to 3060 Main Street for $1.18 million was fraudulent, because it was 100 percent financing, which was not properly disclosed to the lender. The plaintiff bank proved that 3060 Main Street's mortgage was obtained as a result of fraud and that the lien was not valid, pursuant to Connecticut General Statutes §49-51. "Under the facts of this case where the mortgage lien clearly was the product of fraud and the underlying claim also clearly worthless," wrote the court, "the plaintiff's application to discharge the mortgage lien should be granted."

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