Saturday, January 8, 2011
More ammunition for the homeowner in the foreclosure crunch.
A recent ruling in Massachusetts has given homeowners some relief against lenders who have purchased mortgages. With the high rate of transfer of the loans, many banks cannot provide the proper documentations that the bank owns the loan. If the bank cannot prove they own the loan, then it has no right to foreclose. This is an important lesson to anyone facing foreclosure proceedings. The bank must prove that it is in fact the holder of the note that your mortgage secures. While experts are hailing this ruling as "groundbreaking" and "far-reaching", this fact has been well established in Kentucky for many years. In fact, one of my first cases was an appeal for a homeowner where the bank had failed to produce the assignments showing it was the holder of the note. The homeowner won when the bank failed to produce the documents. Now it seems other jurisdictions plan to follow that precedent.