Human ‘WORDDD’ Moments

Top court in Massachusetts voids foreclosures by 2 banks.

by New York Times:

The highest court in Massachusetts ruled Friday that U.S. Bancorpand Wells Fargo erred when they seized two troubled borrowers’ properties in 2007, putting the nation’s banks on notice that foreclosures cannot be based on improper or incomplete paperwork.

Concluding that neither institution had proved it had the right to evict the borrowers, the Supreme Judicial Court voided the foreclosures, returning ownership of the properties to the borrowers and opening the door to other foreclosure do-overs in the state.

Legal experts said that while this ruling did not set a precedent for other states, the outcome will be closely watched across the country because it is the first such ruling from a state’s highest court. Investors viewed the ruling as negative for banks; an index of financial company shares fell almost 1 percent on the day.

The banks’ problems began in the fall of 2008, when Wells Fargo and U.S. Bancorp sought judgments from the Massachusetts Land Court that would have given them clear title to the properties. In 2009, the court rejected the banks’ arguments, ruling that the banks had not been assigned the mortgages before they foreclosed, as is required. Instead, the banks had acquired the mortgages after they had begun foreclosure proceedings. The ruling on Friday upheld that decision.

Foreclosures are supposed to occur only when lenders can prove they own the note underlying the property.

The banks involved in the matter had asked the Massachusetts court to make its ruling prospective, meaning that it would affect only new foreclosures. The court declined to do so, allowing foreclosure cases that have been completed to be reopened and brought under scrutiny.

New York Times

Foreclosed home owners take note, get yourself a good lawyer, gather all paperwork from the alleged foreclosure scrutinize those documents for any irregularities. Look for fraudulent signatures that may belong to deceased debt collectors (Like Martha Kunkle).

This case opens a lot of doors for home owners seeking justice for bank wrongdoings.