Court rules banks can't foreclose on securitized mortgages

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

  1. Revere
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    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
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    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
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    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)
     
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  4. loosecannon
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    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
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    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?
     
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    Last edited: Jan 8, 2011
  6. loosecannon
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    Banks don't own the mortgages anyway, they were securitized and sold to non bank investors.....
     
  7. william the wie
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    william the wie Gold Member

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    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
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    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
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    Obama administration eases foreclosure rules for unemployed
     
  10. editec
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    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
     

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