Court rules banks can't foreclose on securitized mortgages

Discussion in 'Politics' started by Revere, Jan 7, 2011.

  1. Revere
    Offline

    Revere BANNED

    Joined:
    Jan 23, 2010
    Messages:
    7,427
    Thanks Received:
    415
    Trophy Points:
    0
    Location:
    Watching you in my profile page
    Ratings:
    +415
    To quote Vice President Bite Me, this is a big fucking deal.

    See, foreclosure is a risk factor in making a loan. If a bank can't foreclose, it can't price risk and make home loans.

    Banks lose key foreclosure ruling in top Massachusetts court | Reuters

     
  2. Revere
    Offline

    Revere BANNED

    Joined:
    Jan 23, 2010
    Messages:
    7,427
    Thanks Received:
    415
    Trophy Points:
    0
    Location:
    Watching you in my profile page
    Ratings:
    +415
    This is why a drop of x in property values is meaningless to get the housing market reinvogorated.

    Banks won't make loans if they don't know what the rules they have to play under will be tomorrow.
     
  3. Mad Scientist
    Offline

    Mad Scientist Deplorable Gold Supporting Member Supporting Member

    Joined:
    Sep 15, 2008
    Messages:
    23,938
    Thanks Received:
    5,211
    Trophy Points:
    270
    Ratings:
    +7,678
    Those mortgages were bundled and sold to multiple buyers. The total for the scam may reach 1.5 Quadrillion dollars. (Insert Dr.Evil image here)
     
    • Thank You! Thank You! x 1
  4. loosecannon
    Offline

    loosecannon Senior Member

    Joined:
    May 7, 2007
    Messages:
    4,888
    Thanks Received:
    263
    Trophy Points:
    48
    Ratings:
    +264
    My first thought was WHOA. Then I read the article and it didn't say anything that was a departure from present legal norms.

    A yawner.
     
  5. jillian
    Offline

    jillian Princess Supporting Member

    Joined:
    Apr 4, 2006
    Messages:
    69,551
    Thanks Received:
    13,012
    Trophy Points:
    2,220
    Location:
    The Other Side of Paradise
    Ratings:
    +22,427
    it appears that the foreclosures weren't permitted because the bank couldn't prove it owned the debt.

    i'm not sure what the problem is. if i sue someone i don't have an agreement with because i say someone else assigned a right to me, i have to prove it. so do banks.

    and?
     
    • Thank You! Thank You! x 1
    Last edited: Jan 8, 2011
  6. loosecannon
    Offline

    loosecannon Senior Member

    Joined:
    May 7, 2007
    Messages:
    4,888
    Thanks Received:
    263
    Trophy Points:
    48
    Ratings:
    +264
    Banks don't own the mortgages anyway, they were securitized and sold to non bank investors.....
     
  7. william the wie
    Offline

    william the wie Gold Member

    Joined:
    Nov 18, 2009
    Messages:
    7,269
    Thanks Received:
    673
    Trophy Points:
    175
    Ratings:
    +1,604
    This is the same discussion we had in I think it was October of last year when the robo-signer scandal broke. The deeds, notes and/or mortgages went bye-bye years ago. What I wonder is what is going to happen to all of the walkaways?
     
  8. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    Poor little banks having to deal with a problem they created in the quest to make more money. boohoo.
    I guess the repubs in the house will want to bail them out again?
     
  9. KissMy
    Offline

    KissMy Free Breast Exam

    Joined:
    Oct 10, 2009
    Messages:
    12,062
    Thanks Received:
    2,144
    Trophy Points:
    255
    Location:
    In your head
    Ratings:
    +2,921
    Obama administration eases foreclosure rules for unemployed
     
  10. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617


    NO that is NOT what that court decided.

    In order to foreclose one must PROVE that you are the person for whom the debt is being forclosed.

    Banks failed to do that, ergo they did not have the legal standing to foreclose on the mortgage.

    Details matter in issues of contract law
     

Share This Page

Search tags for this page

when bank cannot foreclosure