Did Chase have the right to foreclose on Wamu loans while the sale was pending?
The Puget Sound Business Journal has done some great coverage of the Washington Mutual seizure and the aftermath over the last couple of years, one of which has been the digging into the long delay between the announcement of JPMorgan Chase’s purchase of WaMu’s assets and the closing of the deal. The latest entry in this story questions whether Chase had the legal right to foreclose on WaMu loans in the period where the sale had not yet completed.
But that raised questions, such as: Who owned the assets of failed WaMu in the interim? Was JPMorgan able to foreclose on homeowners with Washington Mutual mortgages before the sale of the assets was complete? Those answers remain hazy. I put in calls to Gray at the FDIC and a Chase spokeswoman today, though neither were immediately available.
The answers to these questions could allow tens of thousands of WaMu customers whom Chase foreclosed upon in the interim to challenge the foreclosures.
WaMu failure | admin May 10, 2011
