Court rules banks can't foreclose on securitized mortgages

[Revere]

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

(Reuters) - In a decision that may slow foreclosures nationwide, Massachusetts' highest court voided the seizure of two homes by Wells Fargo & Co and US Bancorp after the banks failed to show they held the mortgages at the time they foreclosed.

Bank shares fell, weighing on broader stock indexes, on fears the decision could threaten lenders' ability to work through hundreds of thousands of pending foreclosures.

 

[Revere]

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.

 

[Mad Scientist]

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)

 

[loosecannon]

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

(Reuters) - In a decision that may slow foreclosures nationwide, Massachusetts' highest court voided the seizure of two homes by Wells Fargo & Co and US Bancorp after the banks failed to show they held the mortgages at the time they foreclosed.

Bank shares fell, weighing on broader stock indexes, on fears the decision could threaten lenders' ability to work through hundreds of thousands of pending foreclosures.

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.

 

[jillian]

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?

 

[loosecannon]

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.

Banks don't own the mortgages anyway, they were securitized and sold to non bank investors.....

 

[william the wie]

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.

Banks don't own the mortgages anyway, they were securitized and sold to non bank investors.....

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?

 

[uscitizen]

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

(Reuters) - In a decision that may slow foreclosures nationwide, Massachusetts' highest court voided the seizure of two homes by Wells Fargo & Co and US Bancorp after the banks failed to show they held the mortgages at the time they foreclosed.

Bank shares fell, weighing on broader stock indexes, on fears the decision could threaten lenders' ability to work through hundreds of thousands of pending foreclosures.

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?

 

[KissMy]

Obama administration eases foreclosure rules for unemployed

The Obama administration is making it easier for out-of-work homeowners to stay in their homes, as it tries to revamp its troubled foreclosure-prevention program.

Starting Aug. 1, the Federal Housing Administration will extend the period for unemployed homeowners to miss mortgage payments to a full year from three or four months. That will allow qualified homeowners to go without making a monthly payment for 12 months before the foreclosure process begins.

 

[editec]

Court rules banks can't foreclose on securitized mortgages

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

 

[manifold]

Blatantly dishonest thread title.

Obviously Revere is a disingenuous fuckchop.

 

[iamwhatiseem]

It doesn't matter. If the investment firm loses their ass in all this - the government will bail them out with our money anyway.

 

[martybegan]

Court rules banks can't foreclose on securitized mortgages

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

They will have to figure out who is getting the money from the payments, and then distributes it to the shareholders. That person should be the one with the prommisory note. If they were too stupid or lazy to keep track of the paperwork, they cannot foreclose.

I agree with this ruling in that it forces the banks to follow the law when it comes to foreclosure, and doesnt let them take any shortcuts.

 

[william the wie]

Court rules banks can't foreclose on securitized mortgages

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

They will have to figure out who is getting the money from the payments, and then distributes it to the shareholders. That person should be the one with the prommisory note. If they were too stupid or lazy to keep track of the paperwork, they cannot foreclose.

I agree with this ruling in that it forces the banks to follow the law when it comes to foreclosure, and doesnt let them take any shortcuts.

About half of all mortgaged properties will be sold even without foreclosures. Taxes are going to go up and homeowners insurance too when the arson wave hits which will come.