Banks Lose Pivotal Massachusetts Foreclosure Case
”This is likely to open the floodgates to more suits in Massachusetts and strengthens cases in other states.”
Palm Coast, FL – January 9, 2011
U.S. Bancorp and Wells Fargo & Co., in a ruling that drove down bank stocks, lost a foreclosure case before Massachusetts’s highest court that will guide lower courts in that state and may influence others in bank disputes involving state real-estate law.
The state Supreme Judicial Court yesterday upheld a judge’s decision saying two foreclosures were invalid because the banks didn’t prove they owned the mortgages, which he said were transferred into two mortgage-backed trusts without the recipients’ being named.
Joshua Rosner, an analyst at the New York-based research firm Graham Fisher & Co., called the decision “a landmark ruling” showing that at least in Massachusetts a mortgage “must name the assignee to be valid.”
“This is likely to open the floodgates to more suits in Massachusetts and strengthens cases in other states,” Rosner said.
Read More >>>> Bloomberg
About Time
It is about time that a court has taken a positive step forward on behalf of the "people".
Foreclosure & Title Insurance
Seems that anyone who bought a bank foreclousre is really at risk to loosing the house. Former home owners will be trying to get the homes returned and new buyer will be making claims against the Title Insurance Companies. I suspect that once this starts ahappening enmass, Title Companies will be falling like rocks. Again the only ones benefiting are the Attoneys who help create this problem in the beginning.
Attorneys?
How did attorneys create the securitization mess?
The fact the mortgage companies could not/cannot prove they have ownership of a loan is their own doing.
They looked for ways to speed the process of selling loans on the market, came up with MERS, and kept sloppy or no records at all (ie: they cannot find original promissory notes).
I fail to see how attorneys created this mess.