Has a Precedent Been Set for Overturning Foreclosure Rulings?

By
Real Estate Agent with RE/MAX Affiliates

If you haven't heard of the case in Massachusetts in which two foreclosures have been overturned, one held by US Bank and the other by Wells Fargo, you should read up on it.  The conclusion on Friday made by the state Supreme Court says that the aforementioned institutions could not prove they had the right to take back the properties.  The ruling led to immediate wrangling on both sides of the legal isle.  

Some predict that this is the beginning of something that can potentially affect hundreds of thousands of borrowers.  Others argue that the case is specific to not only Massachusetts, but to the two particular cases that were tried, and that no further fallout would occur.  

The center of the issue at hand is that both lenders foreclosed on properties before they had been assigned the mortgage.  In both cases the assignments happened after the foreclosure was complete.  What's interesting to me is that neither previous owner ever denied being late on their payments.  Shouldn't that factor in somewhere before they get their house back?

I'm sure there are attorneys licking their chops and putting cases together as this is being written.  It's just too big of a target to be ignored.  But again, people that have followed the case through the courts insist that the ruling is a good thing.  Saying it proves that servicers of mortgages that are backed by securities do have the right to foreclose and this ruling gives them a precedented outline to follow in the future.

 

What do you think will come of this?  Is it really going to cause a national tsunami of cases or will it fizzle-out as a result of the ruling?

 

 

 

Posted by

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Nick Dailey (CDPE) - Short Sale & Investment Specialist - Northern Kentucky & Greater Cincinnati

Helping families in Northern Kentucky avoid foreclosure.  Northern Kentucky MLS listings of homes for sale.  

Website: www.NickDailey.com

Mobile Site: nickd.m.remax-ohio.com

 

View Nick Dailey's profile on LinkedIn

 

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Ambassador
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Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Well, they certainly put the cart before the horse now, didn't they? How could they foreclose on something for which they did not yet have a right?

Jan 11, 2011 01:40 AM #1
Rainmaker
456,506
Stanley Stepak
Howard Hanna - Avon Lake, OH - Avon Lake, OH
Realtor - Avon Lake, Avon, Bay Village, Westlake,

Oh man that is scary.  Bad enough it was two cases now.

Jan 11, 2011 01:42 AM #2
Rainer
68,972
Nancy Fraser
Exit Realty Premier - Massapequa Park, NY
Realtor, Massapequa Homes for Sale 516-729-0278

Nick, it seems crazy that a bank would move forward to foreclose on a homeowner that was paying their mortgage.

Either people live in homes for years without paying their mortgage and get away with it or they pay and get foreclosed on.

Where is the justice here??????

Jan 11, 2011 01:45 AM #3
Rainmaker
30,111
Nick Dailey
RE/MAX Affiliates - Union, KY
RE/MAX: Northern Kentucky Real Estate - NKY MLS - Short Sale

Nancy - I believe you may have misread something there.  In both cases the homeowners were behind on their payments and outside of the transfer issue, they were in default and the case was valid. 

Jan 11, 2011 01:48 AM #4
Rainmaker
553,708
Barb Szabo, CRS
RE/MAX Trinity Brecksville Ohio - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

Nick, I had a investor buy a home at auction and the same happened to him. He was told by the seller's attorney that the seller filed for bankruptcy and that the foreclosure should not have happened, so the sale was vacated.

Jan 11, 2011 11:42 AM #5
Anonymous
janet

Got forclosed on because Chase could not get our income correct.   Any advise?

Feb 08, 2011 07:13 AM #6
Rainmaker
30,111
Nick Dailey
RE/MAX Affiliates - Union, KY
RE/MAX: Northern Kentucky Real Estate - NKY MLS - Short Sale

Janet - Please call me or send me an email with more details.

Feb 09, 2011 02:27 AM #7
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Nick Dailey

RE/MAX: Northern Kentucky Real Estate - NKY MLS - Short Sale
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