Frost 2008 WL 852650 (Bankr.S.D.Ohio)

Avoidance - Trustee had constructive knowledge of prepetition foreclosure action and could not avoid debtor's mortgage under 544(a)(3).

Where a mortgagee had initiated prepetition foreclosure proceedings against the debtor-mortgagor and had served the debtor with the summons and a copy of the foreclosure complaint, which specifically described the subject property, the day before he filed his bankruptcy petition, the Chapter 13 trustee, by operation of Ohio's lis pendens statute, had constructive knowledge of the mortgagee's mortgage at the time the bankruptcy petition was filed. Therefore, the trustee could not acquire the status of a bona fide purchaser and could not maintain an action to avoid the mortgage pursuant to the Bankruptcy Code's "strong arm" provision.