MEMORANDUM OPINION
This mаtter is before the court on a Motion to Remand or Abstain submitted by Plaintiffs Mary R. Blanton, Thomas F. Sachse, and Michelle Sachse (collectively “Plaintiffs”). For the following reasons, the motion will be denied. In addition, the court will transfer venue of the present case to the Eastern District of New York, for referral to the bankruptcy court in that district.
FACTS
In early 2000, Plaintiffs Thomas F. Sachse and Michelle Sachse (the “Sachs-es”) sought to buy residential real property in Salisbury, North Carolina, and applied for a loan from Island Mortgage Network, Inc. (“Island Mortgage”). Island Mortgage approved a loan to the Sachses for a principal amount of $111,078.00. The Sachses retained Plaintiff Mary R. Blanton, an attorney, to close the loan and the purchase of the property. On June 16, 2000, Blanton received a closing package from Island Mortgage containing a check issued by National Settlement Services Corporation (“NSSC”). That same day, the Sachses signed a promissory note in favor of Island Mortgage and a deed of trust securing the loan. Blanton recorded the deed of trust, forwarded the prоmissory note to Island Mortgage, and disbursed funds to the sellers of the property from her trust account.
When Blanton subsequently attempted to deposit the check issued by NSSC, she discovered a stop-payment order in effect. Blanton later received replacement checks from NSSC on two occasions, only to find stop-payment orders on these checks as well. Unable to obtain the promised loan funds from Island Mortgage, Blanton opened a new line of credit to cover the amount she had paid from her trust account at closing.
Prior to these events, in January 2000, Defendant Matrix Capital Bank (“Matrix”) entered into a mortgage purchase agreement (the “Agreement”) with Island Mortgage and its corporate parent AppOn-line.com (collectively “the Debtors”), to purchase certain residential mortgage loans originated by the Debtors. In the *260 Agreement, the Debtors warranted that all loans sold to Matrix would be valid, funded, and not subject to any claim, defect, lien, or cause of action. (Mem. of Law in Opp’n to Pis.’ Mot. to Remand, Ex. A at 4-8). The Agreement also contained a provision indemnifying Matrix from any breach of these warranties. (Id. at 9). Pursuant to the Agreement, Matrix later purchased from the Debtors the note and accompanying security documents for the Sachses’ mortgage loan.
The Sachses received a letter on July 5, 2000, notifying them that Matrix had purchased their mortgage and directing the Sachses to send subsequent mortgage payments to Matrix. On July 6, 2000, Blanton contacted Matrix and informed a supervisor at Matrix that Island Mortgage had failed to fund the Sachses’ loan. 1 Blanton demanded that Matrix fund the loan. Matrix informed Blanton that it had delivered an amount to cover the loan to an entity called Action Abstract, Inc., Island’s designated escrow agent. Blanton never received these funds. On July 13, 2000, Plaintiffs filed a lawsuit in the Superior Court of Rowan County, North Carolina, against several named defendants 2 alleging breach of contract, fraud, negligent misrepresentation, and unfair and deceptive trade practices. 3
The Sachses’ mortgage was not the only one that Matrix purchased from the Debtors that is subject to competing claims. Matrix currently knows of thirty-seven loans acquired from the Debtors that are subject to claims by parties that participated in the underlying mortgage transaction. At least seven of the loans Matrix purchased from the Debtors have already resulted in litigation in six states, and Matrix expects more litigation to ensue. A number of suits have also been brought against other banks, similar to Matrix, that purchased mortgage loans from the Debtors.
On July 19, 2000, the Debtors filed separate petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of New York. The bankruptcy court has entered an Order for Relief and has appointed a Trustee for the cases. Due to a bankruptcy stay, Matrix has been prevented from asserting cross-claims against the Debtors in the various actions that have been brought. The bankruptcy stay has also prevented Matrix from compelling discovery from the Debtors. Matrix has filed adversary proceedings in the bankruptcy cases, but has been unable to conduct discovery because of the Trustee’s *261 on-going investigation, a federal grand jury invеstigation of the Debtors pending in the Eastern District of New York, and an investigation conducted by the New York State Banking Commission.
In light of these circumstances, Matrix removed the various lawsuits pending against it, including the present action, pursuant to 28 U.S.C. §§ 1334 and 1452. Since removal of the present action to federal court, the Bankruptcy Court for the Eastern District of New York has issued an order authorizing the Trustee to sell at auction certain mortgages deemed part of Island Mortgage’s bankruptcy estate. 4 The mortgages to be sold include the Sachses’ mortgage. In an effort to expedite the disposition of this case and the other cases around the country involving disputed mortgages purchased from Island Mortgage, Matrix seeks to transfer all of the lawsuits in which it is a named defendant to the Bankruptcy Court for the Eastern District of New York. Plaintiffs have filed the present motion seeking to prevent such a transfer and arguing that this court should remand the case to state court.
DISCUSSION
28 U.S.C. §§ 1884(b) and 1452(a)
Title 28, United States Code § 1452(a) states, “A party may remove any claim or cause of action in a civil action ... to the district court for the district where such civil action is pending, if such district court has jurisdiction of such claim or cause of action under section 1334 of this title.” 28 U.S.C. § 1452(a). Title 28, United States Code § 1334(b) provides, “Notwithstanding any Act of Congress that confers ex-elusive jurisdiction on a court or courts other than the district courts, the district courts shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases under title 11.” 28 U.S.C. § 1334(b) (emphasis added). Matrix claims that removal was proper because the suit brought by Plaintiffs “relates to” the Debtors’ bankruptcy proceedings in the Eastern District of New York. Plaintiffs contend, however, that their suit against Matrix is collateral to the bankruptcy proceedings and should be remanded to state court.
The Fourth Circuit has adopted the test set forth in
Pacor, Inc. v. Higgins,
[Wjhether a civil proceeding is related to bankruptcy is [determined by] whether the outcome of that proceeding could conceivably have any effect on the estate being administered in bankruptcy. Thus, the proceeding nеed not necessarily be against the debtor or against the debtor’s property. An action is related to bankruptcy if the outcome could alter the debtor’s rights, liabilities, options, or freedom of action (either positively or negatively) and which in any way impacts upon the handling and administration of the bankruptcy estate.
Pacor,
In
In re Celotex,
the Fourth Circuit found that the civil proceeding in question “related to” the bankruptcy case, and therefore federal jurisdiction was proper. The appellant in
In re Celotex,
Owens-Illinois, Inc. (“Owens”), originally sought contribution from Celotex Corporation for joint and several judgments satisfied by Owens. Before Owens could recover any contribution, Celotex Corporation filed for bankruptcy. Owens then brought suit for contribution against another corporation, Rapid American Corporation (“Rapid”). Rapid removed the action to federal court, claiming that the civil proceeding “related to” Celotex Corporation’s bankruptcy case. The Fourth Circuit agreed. The court cited several rеasons for finding that the contribution action related to the bankruptcy case. First, the court stated that any recovery by Owens in the contribution action would reduce Owens’ claim against the Celotex Corporation bankruptcy estate by the same amount. This would alter the liabilities of the Celotex Corporation bankruptcy estate. Second, because of an indemnity agreement between Rapid and Celotex Corporation, the court found that any recovery by Owens in its contribution action against Rapid would affect the handling and administration of the bankruptcy estate by transforming an indemnity claim by Rapid against Celotex Corporation from “contingent and unliquidated to certain and liquidated.”
In re Celotex,
The Pacor case, from which the Fourth Circuit derived its “related to” test, also found the presence (or absence) of an indemnity agreement dispositive of the “related to” question. In
Pacor,
the Third Circuit held that the civil proceeding in question did not relate to a bankruptcy
*263
case, but the court took particular care to distinguish the case from
In re Brentano’s, Inc.,
These cases indicate that the civil proceeding between Plaintiffs and Matrix “relates to” the Debtors bankruptcy case under 28 U.S.C. § 1334(b). First, as in In re Celotex, a judgment for the Plaintiffs against Matrix will reduce any clаims Plaintiffs might have against the Debtors. In addition, as in In re Celotex and In re Brentano’s, the mortgage purchase agreement between Matrix and the Debtors contains an indemnification clause. This clause states that the Debtors agree to indemnify Matrix from “any and all suits, losses, liabilities, liens, expenses, costs, damages, fees or claims made by borrowers or third parties” against Matrix caused by any breach by the Debtors of any warranty made in the Agreement or in the-mortgages delivered under the Agreement. (Mem. in Opp’n to Pis.’ Mot. to Remand, Ex. A at 9). Since this clause covers attorney’s fees that Matrix incurs in the present case, the bankruptcy estates face greater potential liability to Matrix than to Plaintiffs. As in In re Celotex, this difference in potential liability could affect the administration of the bankruptcy estates. Therefore, the court finds that the present case relates to the Debtors’ bankruptcy cases and removal was proper under 28 U.S.C. §§ 1334(b) and 1452(a).
28 U.S.C. § 1331(c)(2)
Plaintiffs next contend that even if the present case is related to the Debtors’ bankruptcy cases, 28 U.S.C. § 1334(c)(2) requires that this court abstain from asserting jurisdiction. Title 28, United States Code § 1334(c)(2) provides that:
Upon timely motion of a party in a proceeding based upon a State law claim or State law cause of action, related to a case under title 11 but not arising under title 11 or arising in a case under title 11, with respect to which an action could not have been commenced in a court of the United States absent jurisdiction under this section, the district court shall abstain from hearing such proceeding if an action is commenced, and can be timely adjudicated, in a State forum of appropriate jurisdiction.
28 U.S.C. § 1334(c)(2). Thus, mаndatory abstention is appropriate under § 1334(c)(2) when the following requirements are met: (1) a timely motion is made; (2) the proceeding is based on a state law claim or a state law cause of action; (3) the proceeding is related to a case under Title 11; (4) the proceeding does not arise under Title 11; (5) the action could not have been commenced in a federal court absent jurisdiction under 28 U.S.C. § 1334; and (6) an action is commenced, and can be timely adjudicated, in a state forum of appropriate jurisdiction.
Contrаry to Plaintiffs’ position that 28 U.S.C. § 1334(c)(2) mandates abstention, Matrix argues that the statute’s fifth requirement (that the action could not have been commenced in a federal court absent jurisdiction under 28 U.S.C. § 1334) has not been met. The court agrees. The *264 present action could have been commenced in federal court based on diversity jurisdiction. According to 28 U.S.C. § 1332(a), “The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between citizens of different States.” 28 U.S.C. § 1332(a)(1). According to the amended complaint, the mortgage at issue has a value in excess of $110,000. In addition, all three plaintiffs are citizens of North Carolina and none of the named defendants are North Carolina citizens. Therefore, the amount in controversy requirement is met and complete diversity exists. This court has original jurisdiction under 28 U.S.C. § 1332(a).
Plaintiffs acknowledge that Matrix could have invoked diversity jurisdiction at the commencement of the case, but argue that the requirements of 28 U.S.C. § 1334(c)(2) are still satisfied because “[i]f ‘related to’ jurisdiсtion exists, this action only could have been removed under the bankruptcy removal statutes, and therefore mandatory abstention applies.” (Reply to Defs.’ Mem. in Opp’n to Pis.’ Mot. to Remand at 6). Plaintiffs cite
Balcor/Morristown Ltd. P’ship v. Vector Whippany
Assocs.,
Plaintiffs’ position also contradicts the clear language of 28 U.S.C. § 1334(c)(2). The statute states that the district court must abstain frоm hearing an action if the action
“could not have been commenced
in a court of the United States absent jurisdiction under [§ 1334].” 28 U.S.C. § 1334(c)(2) (emphasis added). Under this clear language, if a party could have commenced the action in federal court on some basis other than the bankruptcy statutes, the mandatory abstention statute does not apply.
See Medical Lab. Consultants v. American Broad. Co., Inc. (In re Med. Lab. Mgmt. Consultants),
28 U.S.C. §§ 14.52(b) and 1884(c)(1)
Plaintiffs also argue that even if the present action is related to the Debtors’ bankruptcy case and the mandatory abstention statute does not apply, equity warrants that this court exercise its discretion tо remand the case pursuant to 28 U.S.C. § 1452(b) or to abstain under 28 U.S.C. § 1334(c)(1). Title 28, U.S.C. § 1452(b) states in pertinent part, “The court to which [a] claim or cause of action is removed [pursuant to 28 U.S.C. § 1334] may remand such claim or cause of action on any equitable ground.” 28 U.S.C. § 1452(b). Title 28, U.S.C. § 1334(c)(1) states that “[n]othing in [§ 1334] prevents a district court in the interest of justice, or in the interest of comity with State courts or respect for State law, from abstaining from hearing a particular proceeding arising under title 11 or arising in or related to a case under title 11.” 28 U.S.C. § 1334(c)(1).
Courts have considered several fаctors when determining whether to exercise equitable remand or permissive abstention.
5
These factors include: (1) the court’s duty to resolve matters properly before it; (2) the predominance of state law issues and non-debtor parties; (3) the economical use of judicial resources; (4) the effect of remand on the administration of the bankruptcy estate; (5) the relatedness or remoteness of the action to the bankruptcy case; (6) whether the case involves questions of state law better addressed by the state cоurt; (7) comity considerations; (8) any prejudice to the involuntarily removed parties; (9) forum non conveniens; (10) the possibility of inconsistent results; (11) any expertise of the court where the action originated; and (12) the existence of a right to a jury trial.
See Browning v. Navarro,
Based on these factors, the court finds that federal jurisdiction is appropriate. First, the court acknowledges that some factors weigh in favor of remanding the action to state court. Compelling reasons exist, however, to maintain fеderal jurisdiction. Foremost, due to the discovery stay currently in place in the bankruptcy proceedings, Matrix would be severely prejudiced if it were forced to *266 proceed in state court. The equitable remedies Plaintiffs seek against Matrix are predicated on allegations of misconduct by the Debtors. Without the ability to compel discovery from the Debtors, Matrix cannot fully defend itself against Plaintiffs’ claims. The state court could not compel such discovery. Moreover, the court recognizes the duty to resolve matters рroperly before it. As discussed earlier, under the broad construction used by the Fourth Circuit, the present action “relates to” the bankruptcy proceeding. In addition, Matrix could have originally removed the present action based on diversity jurisdiction. Therefore, the action is properly in federal court, and the federal courts have a duty to resolve the matter. Additionally, while the causes of action asserted by Plaintiffs are based on state law, they do not involve novel legal questions which would be better resolved by the state сourts. Finally, with multiple similar actions pending against Matrix and other mortgage purchasers throughout the country, judicial economy and consistency favor maintaining federal jurisdiction and transferring the proceeding to the Bankruptcy Court for the Eastern District of New York.
Transfer of Venue
According to 28 U.S.C. § 1412, “A district court may transfer a case or proceeding under title 11 to a district court for another district, in the interest of justice or for the convenience of the parties.” 28 U.S.C. § 1412. The court recognizes that change of venue to the Eastern District of New York may prоve less convenient to Plaintiffs than proceeding in this court, but the interest of justice weighs in favor of such a transfer.
See Irwin v. Beloit Corp. (In re Harnischfeger Indus., Inc.),
The Bankruptcy Court for the Eastern District of New York has ordered the sale by auction of several mortgages, including the Sachses’, deemed by the Trustee to be part of Island Mortgage’s bankruptcy estate. Matrix has filed an application for modification of this order, and Plaintiffs have filed a notice of appeal from this order. As evidenced by these filings, the bankruptcy court is already familiar with the competing claims of priority regarding the Sachses’ mortgage and numerous other mortgages involving similar competing claims. Therefore, judicial economy and the economic administration of the bankruptcy estate weigh in favor of transferring the proceeding. Moreover, with multiple cases around the country involving the same factual scenario, including at least two cases arising from mortgages issued in North Carolina, transferring the cases to a single court for disposition reduces the likelihood of inconsistent results.
*267
In addition to these concerns over judicial efficiency and consistency, many courts presume that the proper venue for a proceeding related to a bankruptcy case is in the district hearing the bankruptcy case.
See Sudbury, Inc. v. Dlott (In re Sud-bury),
CONCLUSION
For the foregoing reasons, the court will deny Plaintiffs’ motion to remand. The court will also transfer venue of the present action to the United States District Court for the Eаstern District of New York for referral to the bankruptcy court in that district.
Notes
.According to Plaintiffs, the supervisor acknowledged that Matrix knew as early as June 9, 2000, that there were problems with the funding of Island mortgage loans. The supervisor told Blanton that Matrix had suspended its funding line with Island Mortgage and had requested that the State of New York suspend Island Mortgage's mortgage banking license. On June 30, 2000, the New York State Banking Commission suspended Island Mortgage’s license.
Plaintiffs also allege that on July 7, 2000, one day after Blanton spoke with the Matrix supervisor, Matrix itself executed a purported mortgage assignment attempting to assign Island’s interest in the mortgage to Matrix.
While these allegations might bear on the ultimate disposition of the case, they do not affect the question currently before the court: whether this court should exercise jurisdiction.
. The Debtors are named as defendants in the lawsuit, but Plaintiffs do not seek any damages from them.
. Plaintiffs seek damages from National Settlement Services Corporation, the entity that issued the checks Blanton received. The complaint also requests equitable relief against Mаtrix in the form of an equitable subrogation, equitable lien, constructive trust, resulting trust, or cancellation of the promissory note and deed of trust.
. The Trustee takes the position that the mortgages authorized for sale by the bankruptcy court, including the Sachses’ mortgage, were actually financed, rather than purchased, by warehouse lenders like Matrix. As a result, the Trustee considers these mortgages part of the bankruptcy estate.
. "[Virtually the same (if not identical) factors have emerged for judging the propriety of permissive abstention under § 1334(c)(1) as have been articulated for deciding the propriety of remand under § 1452(b).”
Ernst & Young, LLP v. Devan (In re Merry-Go-Round Enters., Inc.),