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IN RE LANCASTER MORTG. BANKERS, LLC

Bankruptcy No. 07-22479 (MBK). Adversary No. 08-1028 (MBK).

391 B.R. 714 (2008)

In re LANCASTER MORTGAGE BANKERS, LLC d/b/a Direct Lending Group, Debtor. Peggy Stalford, Chapter 7 Trustee for the Debtor Estate of Lancaster Mortgage Bankers, LLC d/b/a Direct Lending Group, Plaintiff, v. Lion Financial, LLC and Specialized Loan Servicing, LLC, Defendants.

United States Bankruptcy Court, D. New Jersey.

June 4, 2008.

Attorney(s) appearing for the Case

Patricia A. Staiano, Esq., Hellring Lindeman Goldstein & Siegal LLP, Newark, NJ, Arthur M. Field, Esq., Greer, SC, for Defendant Lion Financial, LLC.

Steven Mitnick, Esq., Mitnick & Malzberg, P.C., Frenchtown, NJ, for Plaintiff/Trustee, Peggy Stalford.

Allen Gorski, Esq., Teich Groh, Trenton, NJ, Special Counsel for Plaintiff/Trustee, Peggy Stalford.

Charles R. Jacob III, Esq., Haynee C. Kang, Esq., Miller & Wrubel P.C., New York, NY, for Defendant Specialized Loan Servicing LLC.

Emmanuel J. Argentieri, Esq., Parker McCay P.A., Marlton, NJ, Frederick D. Holden, Jr., Esq., Orrick, Herrington and Sutcliffe LLP, San Francisco, CA, for Indymac Bank FSB.

MEMORANDUM DECISION

MICHAEL B. KAPLAN, Bankruptcy Judge.

This matter comes before the Court on the motion for summary judgment filed by Defendant, Lion Financial, LLC ("Lion") and the cross motion for summary judgment filed by Plaintiff, Peggy Stalford, Chapter 7 Trustee ("Plaintiff or "Trustee") for the Debtor, Lancaster Mortgage Bankers, LLC ("Debtor" or "Lancaster"). In this adversary proceeding, Plaintiff asserts an ownership interest in certain

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