Foreclosures May Be Undone by State Ruling on Mortgage Transfer

Categorized | STOP FORECLOSURE FRAUD

Foreclosures May Be Undone by State Ruling on Mortgage Transfer

Posted on06 January 2011. Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Foreclosures May Be Undone by State Ruling on Mortgage Transfer

By Thom Weidlich – Jan 6, 2011 12:01 AM ET

Massachusetts’s highest court is poised to rule on whether foreclosures in the state should be undone because securitization-industry practices violate real- estate law governing how mortgages may be transferred.

The fight between homeowners and banks before the Supreme Judicial Court in Boston turns on whether a mortgage can be transferred without naming the recipient, a common securitization practice. Also at issue is whether the right to a mortgage follows the promissory note it secures when the note is sold, as the industry argues.

A victory for the homeowners may invalidate some foreclosures and force loan originators to buy back mortgages wrongly transferred into loan pools. Such a ruling may also be cited in other state courts handling litigation related to the foreclosure crisis.

“This is the first time the securitization paradigm is squarely before a high court,” said Marie McDonnell, a mortgage-fraud analyst in Orleans, Massachusetts, who wrote a friend-of-the-court brief in favor of borrowers. The state court, under its practices, is likely to rule by next month.

Claims of wrongdoing by banks and loan servicers triggered a 50-state investigation last year into whether hundreds of thousands of foreclosures were properly documented as the housing market collapsed. The probe came after JPMorgan Chase & Co. and Ally Financial Inc. said they would stop repossessions in 23 states where courts supervise home seizures and Bank of America Corp. froze U.S. foreclosures. Massachusetts is one of 27 states where court supervision of foreclosures generally isn’t required.

Unknown's avatar

Author: timothymccandless

The Impact—and Your Opportunity As Our Client left the hearing room, he knew this victory was bigger than just The Crossings. Other property owners facing similar issues could now challenge their assessments with greater confidence. The case set a precedent, demonstrating that robust, market-informed evidence could lead to fair property valuations. It had been a battle, but he had proved that the system could be challenged—and that fairness in taxation was worth fighting for. Could You Be Overpaying on Property Taxes? If you own Large apartment complexes or commercial property, you may be paying far more in property taxes than you should. Just like Our Client, you have the right to challenge an unfair assessment and secure the tax savings you deserve. At Lower Property Tax CA, we specialize in helping property owners like you reduce their tax burden. Our expert consultants and appraisal team will analyze your property’s financials, market conditions, and county assessment methodologies to build a strong case for a reduction.We recognize that every client's tax situation is unique. That's why we take the time to understand your specific needs and tailor our services accordingly. You can count on us to provide personalized attention to your tax matters.

Leave a comment