MA Supremes rule against banks in foreclosure cases
Things just got a little easier for homeowners challenging their foreclosures.
The Massachusetts Supreme Court ruled in two foreclosure cases (WSJ Two Banks Lose in Foreclosure Cases,1/8/11) to void the foreclosures because the owners of the mortgages could not sufficiently prove that they owned the loans.
The Massachusetts case is a closely watched example of what some mortgage experts describe as “show-me-the-paper” cases over widely used procedures for transferring loans after they are made. Individual loans often are sold to an investor, with the new owner’s name left blank in loan documents to minimize paperwork hassles as the loan subsequently changes hands before being combined with other loans into mortgage-backed securities.
The real significance of this ruling however is the fact that the banks could not get the proper paperwork together even after months and for the Supreme Court of Massachusetts. It seems likely that the banks have really screwed up the paper trail in the last several years such that there may be a lot more loans they can not prove ownership on.
Even more reason to challenge your Chase foreclosure before it is final; start asking them now to prove they have the authority to foreclose on you.
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Constitutional Law: Cases, History, and Dialogues | Lstt-polinema.com — January 8, 2011 @ 4:03 pm
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