There is a foreclosure in Saint Cloud MN that has been going on for 3 years. It could now potentially have an impact on the entire country, just like the Massachusetts case that voided 2 foreclosures earlier this year.
On January 15, 2011 the Star Tribune printed a story called Tiny law project looking for big case ; the case of the Saint Cloud MN homeowners foreclosure battle. The homeowners assert the bank lacks the legal standing to foreclose, and their attorney alleges that the bank (US Bank) fabricated paperwork they could not find, in order to prove their position. US Bank claims they have no responsibility to prove the process was done correctly, as they are a Trustee for the securitization.
The homeowners attorney is currently seeking class action status, which could make the impact of this much larger than just one case, and could include many more plaintiffs. The good news is the attorney is a part of a small non profit organization and whatever court decision comes down will likely be to the benefit of the clients.
To their credit the St. Cloud, MN homeowners do not expect a free ride. What they want is a workable modification of their mortgage, and to know they are paying the right party (their mortgage changed hands 4 times).
The Massachusetts Supreme Court rulingwill have an effect, it has been blogged about by several of my fellow ActiveRainers (I have included several links below). These cases also bring a lot of questions to mind, as is fairly represented in the post Massachusetts Supreme Judicial Court Ruling today regarding Foreclosed Properties by MaryBeth Mills Muldowney a MA Realtor.
Delays in the foreclosure process are already evident, and if the courts vacate the banks position entirely, we (taxpayers) could end up picking up the tab. Again.
MASSACHUSETTS SUPREME JUDICIAL COURT RULES AGAINST WELLS FARGO AND US BANKORP FORECLOSURES. . . . . THE PLOT THICKENS. by Lenn Harley
Massachusetts Supreme Judicial Court Affirms Ibanez by Jessica L. Albino
Massachusetts court throws out two foreclosures where assignments were not recorded by Dan Rosenberger
Foreclosure Apocalypse Now? What Every REO & Foreclosure Realtor Needs To Know About The Massachusetts Ibanez Decision by Richard Vetstein
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