Second Circuit case determines a discharge may not be required in order to remove a wholly unsecured mortgage.  (In Re Herman F. Miller Jr., 22 CBN 308, 2011 WL 6257450 (Bankr. E.D. N.Y. 12/15/11).  The court ruled a wholly unsecured mortgage could be removed even though the debtor was ineligible to receive a discharged based upon a prior filing.

Cited: Holder of Note & Mortgage Had Standing to Seek Relief

Consumer Bankruptcy News Dec 22, 2011 vol. 22, issue 4

The holder of a note and mortgage has standing to bring a motion to lift stay.  Capital One Bank received an assignment from Mortgage Electronic registration system (MERS) was able to overcome an objection to the lift stay motion by a chapter 7 trustee.  The court in essence determined that whether Capital One Bank would ultimately prevail in a state court foreclosure, is an issue for state court determination.  However in 11 usc 362(d) the MERS possession of the note and mortgage in the assignment is enough to establish standing for Capital One to pursue a lift stay motion.