On November 16 U.S. District Judge Christopher Boyko (Cleveland, OH) threw the entire mortgage community a curveball. A total of 14 foreclosure cases were brought into his courtroom, not an uncommon practice these days. He responded by dismissing every one. What was the reasoning?
The judge maintains that the seizure of property through foreclosure must be initiated by the owners of the property. These properties were held as mortgage debt in securities and the cases were begin brought "on behalf" of the mortgage investors. These particular actions were represented by Deutsche Bank National Trust Company.
The ramifications of this case will be interesting to watch as Florida and California are the current leaders in the Real Estate foreclosure market.
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