Mortgage case is huge

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The most important court case to have been decided in the past year has been largely ignored by the media.

In the U.S. Bank National Association v. Ibanez case, the Massachusetts Supreme Judicial Court ruled that a bank had no legal right to foreclose because it could not prove it had the mortgage. The banks, in a moment of greed, divided up mortgages to sell as derivatives, but neglected the paper trail of ownership of the mortgages. Their argument of “the mortgage follows the note” did not fly, and Ibanez, instead of being homeless, now has the title.

Democrat U.S. Rep. Marcy Kaptur of Ohio’s Rust Belt has urged her constituents to obtain legal counsel and to challenge the banks, as they cannot produce the proper paper trail, even if they say they can. This begins a new leg of the “Occupy Your Home” movement.

What this ruling implies is that even if you have already been foreclosed upon and evicted, you can still get your home back if the bank didn’t own the mortgage at the time of foreclosure. If you bought up foreclosures at bargain prices, it’ss time to check your title insurance.

The legal ramifications are not yet known, as cases will have to go forward in all 50 states. Right now, the banks are scrambling.

Michael Ledo

Windsor, S.C.

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dichotomy
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dichotomy 03/27/12 - 09:39 am
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Well, the fact is that these

Well, the fact is that these people owe money to SOMEBODY. If the banks got together and swapped the mortgages back to the banks that do hold the last valid paperwork, the people could still be foreclosed. And that is exactly what they should do. I'm sorry folks but you borrowed the money and you need to make the payments or get out of the house. The banks did not make you sign that note. Derivatives and all of the other "big mean bank" issues aside, you owe the money and until you pay, the bank, some bank, owns your house.

This was a "technicality" ruling by the courts but I think in the long run it will be detrimental for future home buyers and the housing market in general.

omnomnom
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omnomnom 03/27/12 - 12:24 pm
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scream rule of law except

scream rule of law except when it benefits the common man. can this independent ask why does it seem like republicans favor companies over human beings? dichotomy, if the shadow foreclosures were all listed on the open market it would finally bottom out. the mortgager should be allowed a fair shot to pay off / terms renegotiated. taxpayers bailed out the banks.

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