The Nevada Division of Mortgage Lending issued a statement to all interested parties regarding Cetus Mortgage’s filing of Chapter 11 Bankruptcy.  As a result of the bankruptcy filing and the appointment of a Trustee, the Division will be vacating its Order Taking Possession.

The statement can be found below:

On July 9, 2008, Cetus filed a petition under Chapter 11 of the Bankruptcy Code, commencing Case No. 08-51131-GWZ which is pending in the U.S. Bankruptcy Court, District of Nevada (Reno).

On July 14, 2008, the U.S. Trustee in the Chapter 11 case, William B. Cossitt, filed a Motion to Appoint Trustee. The Bankruptcy Court granted the U.S. Trustee’s motion to appoint a trustee on July 15, 2008.

It is anticipated that the U.S. Trustee will be filing a motion seeking Bankruptcy Court approval of a specific qualified/credentialed individual to act as the Chapter 11 Trustee in the Cetus case. Until a trustee is appointed by the Bankruptcy Court, the Division is unable to advise investors or borrowers as to who will be servicing their loans. A meeting of creditors of the bankruptcy estate has been set for August 11, 2008.

As a result of the bankruptcy filing and the appointment of a Trustee, the Division will be vacating its Order Taking Possession.

While the Division is doing all that it can within its jurisdiction to protect investors, do not delay any civil action you might be considering regarding this matter.

Impacted parties may direct their general inquires to the Division at mldinfo@mld.nv.gov. An “interested party” list is being compiled from the e-mails being received and additional information will be provided when it becomes available.