Friday, January 7, 2011

Chalk One Up For The Little Guy

In a ruling with major national implications, the Massachusetts Supreme court voided the foreclosure of two homes by Wells Fargo and U.S. Bank after the banks were unable to provide proof that they held the mortgages at the time of the seizure.  Foreclosures without proper documentation have been a hot topic, with other cases pending and all 50 state attorneys generals examining the issue.  The problem occurs when a mortgage is sold or transferred to another servicer without sending or transferring the corresponding mortgage documents. 

Justice Ralph Gants wrote that Wells Fargo and U.S. Bancorp "failed to make the required showing that they were the holders of the mortgages at the time of foreclosure."  And Justice Robert Cordy condemned "the utter carelessness" that the banks showed in attempting to document their right to the properties.

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