More judges rule that lenders lack documents, have no right to foreclose

[cal04]

http://www.washingtonpost.com/wp-dyn/content/article/2010/10/06/AR2010100607227.html?hpid=topnews

Millions of U.S. mortgages have been shuttled around the global financial system - sold and resold by firms - without the documents that traditionally prove who legally owns the loans.

Now, as many of these loans have fallen into default and banks have sought to seize homes, judges around the country have increasingly ruled that lenders had no right to foreclose, because they lacked clear title.

(snip)
Kentucky attorney Heather Boone McKeever has filed a state class-action suit and a federal civil racketeering class-action suit on behalf of homeowners facing foreclosure, alleging that MERS and financial firms that did business with it have tried to foreclose on homes without holding proper titles.

"They have no legal standing and no right to foreclose," McKeever said. "If you or I did this one time, we'd be in jail."

[underpants]

1. I read here a while ago that there are two instruments needed to foreclose

Proof of ownership and right to the note

(forgot the actual names of the instruments)

other than that.... sorry you didn't bring your homework

[knowbody0]

2. back in my days as a mortgage banking accountant

the note and title were kept locked in fire proof safe. people were fired for not keeping with the strict regulations. I cannot imagine what madness changed the industry since then. imo they deserve the fallout from their folly. I wonder what would happen if we all demanded to physically hold our original documents.

[no_hypocrisy]

3. I would imagine those "owners" of the mortgages only have Assignments

and not the actual Mortgage and Note.

[TheMadMonk]

5. My understanding they were registerered and electronically recorded...

...with a service they created for the purpose of exchanging "notes" as quickly and cheaply as possible. A service that has no legal standing whatsoever. The physical notes were then destroyed.

If you have a morgtage, get a lawyer to demand to see the paperwork.

The latest attempt to require that one state accept out of state "documentation" as is, not require that local standards be adhered to is something of a "bailout" for the banks. Without it, there is a very real chance that a huge proportion of morgtages could simply be vacated. And if you've got the pockets to fight it, perhaps even a refund of all payments made after the physical note was destroyed.

Cue (re)incorporation of the morgtage document exchange in Delaware, or whichever state first approves paperless electronic morgtages and guarantees the minimum amout of regulation and oversight.

[EC]

4. I wonder if they'll find this with auto loans too...

Have been noticing that many auto loans actually are sold off the last year of the loan...actually it's more like, when the loan is taken out - there are actually 2 financiers - one that finances all but the last year and then another that finances the last year...it could be the same company like wells fargo, but different divisions...I know when I paid off mine, I had a hell of a time getting my title...they seemed to keep putting me off for over 6 months before I finally got it...they couldn't find who held it...now my co-worker is having the same problem and the guy at the car lot where she is buying a new car told her that certain banks have been doing their loans kinda hinky...

[hobbit709]

6. Show me the papers.

[Better Today]

7. Ya'll will all be surprised then to find out Obama has on his desk a bill to give banks

the right to use those as well as potentially fraudulent docs throughout the US regardless of local, county, or state laws. There are now about 5 or 6 threads on it. Seems Obama intends to sign it, but after the elections so it doesn't hurt the Dems who rushed it through the Senate on 9/30 or the Dems in the House who passed it back in April.

As has been said in the other threads, the betrayals are nearly complete. There's no point in voting for Dems, they don't legislate for "us," they legislate for their corporate overlords.