Foreclosures

By
Real Estate Broker/Owner with fishMLS Realty

A federal judge has refused to temporarily block many Hennepin County foreclosures in a ruling that signals that the borrowers could have a hard time proving their case.

Judge Joan Ericksen on Wednesday denied a request for a temporary restraining order against foreclosures initiated by a national electronic mortgage registry. The case is being closely watched by the real estate financing industry because the registry initiates an estimated 40 percent of metro-area foreclosures.

Ericksen ruled that the five borrowers who are seeking class-action status didn't meet the threshold for the temporary order, in part because their chances of prevailing in their lawsuit are slim.

Attorneys for the borrowers argue that the national registry violated Minnesota law because its foreclosure notices don't list assignments, a document recorded when a mortgage is sold to another party, as required by law.

But attorneys for the registry said that it remains the mortgage holder of record even when ownership of a loan is sold, so there is no assignment. Ericksen said borrowers hadn't proved that the registry assigns its interests.

Attorney Amber Hawkins, representing the borrowers, said they will proceed with their underlying challenge. She said they'll argue for Ericksen to certify the issue to the Minnesota Supreme Court for review.

Robert Pratte, representing the registry, said he was still studying the ruling but agreed with its conclusion.

 Visit www.fishmls.com for all of your real estate needs.  Minnesota Real Estate

Comments (1)

Anonymous
Anonymous

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain.  It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm
Feb 29, 2008 02:22 PM
#1