Court Ruled Against Two Banks In Foreclosure Cases
Setback for banks after the Massachusetts Supreme Court ruled against them in two foreclosure cases
. Two big banks, Wells Fargo & Co. and US Bancorp suffered the loss. Both the lenders were accused of shoddy and careless paperwork, as they could not prove to the Supreme Court that they were the holders of the loan.Two cases of Mark and Tammy LaRaces and Antonio Ibanez, who defaulted on their mortgage payments, were undergoing foreclosure hearing in the lower court. Keith C. Long, a judge in the lower land court of Massachusetts, found during the investigation the note that states the ownership of the mortgage was not clearly presented and cited doubts of improper paperwork.
The lenders in counter justification denied that they did not have clear title to the loan. This displays lack of proper execution and co-ordination by the lenders, as they were proved guilty on Friday 7th, when the Supreme Court of Massachusetts denied their appeal and proved that they did not have a clear title to the mortgage.
Justice Ralph D. Gants concurred that the lenders have failed to make the required showing that they were the holders of the mortgages at the time of foreclosure. Everyone in the country has condemned such negligence by the banks.
In another report, Justice Robert J. Cordy mentioned that the financial lenders had displayed utter carelessness while they documented the titles to their assets. During the hearing, it was proved that case of Antonio Ibanez passed through five owner hands before settling into the pool of mortgages, which rests with the US bank, which is the trustee of these mortgages. There was enough evidence to show that during these five transfers the banks did not sign either of the documents clearly.
Even in LaRaces foreclosure cases, the testimony banks provided was just a simple photocopy of pooling and serving agreement, which was again not signed properly. Although the cases are yet to reach their final decision, it is amply clear that both homeowners have high possibility of getting back their houses unless the lenders come up with evidence to prove their title to the mortgage.
This instance demonstrates that Supreme Court has the powers to void several foreclosure cases and provide relief and justice to distressed homeowners. There should be strict guidelines that banks must follow and review every foreclosure case thoroughly before presenting it to the court.
by: Dywon Erick Dylon