Posted on 11/17/2007 8:23:04 AM PST by AndyJackson
In a decision piggy-backing on Judge Boyko’s recent Deutsche Bank ruling (announced on this site Tuesday), Judge Rose has thrown out another batch of foreclosures, making the following summary remarks:
“This court is well aware that entities who hold valid notes are entitled to receive timely payments in accordance with the notes. And, if they do not receive timely payments, the entities have the right to seek foreclosure on the accompanying mortgages.
However, with regard the enforcement of standing and other jurisdictional requirements pertaining to foreclosure actions, this court is in full agreement with Judge Christopher A Boyko for the Northern District of Ohio who recently stressed, ‘That the judicial integrity of the United States District Court is ‘Priceless.’”
The ruling is another HUGE victory for consumer advocate attorneys and homeowners in general.
A pdf file of the full ruling is available here.
Jacksonville Legal Aid attorney April Charney remarked to us regarding the two Ohio decisions:
As to the real ramification of the Ohio decision, aside from slowing the foreclosure trains, is that the fact that there were no “original” assignments rendering the sales of the mortgages to the trusts, in violation of the true sale obligations imposed by securities law. ”
For more comments by April and us on this foundational issue of these rulings, see our next post. There we also address some criticisms and critiques we’ve received since our original coverage.
Wouldn’t these buyers all be required to have mortgage insurance?
“I think not. This is a business loss and comes off the profits of the owners of the company that does this business.”
Not sure I agree with that. Those businesses sure won’t stay in business absorbing losses from people who won’t pay their bills.
A lot of Americans' and Europeans' pension funds are invested in this "high yield low risk" junk. It is not just the crooks we need to worry about.
Where did the money go - well, the beneficiaries, are all the middle men in this circus, and the last guy to sell. The money is in yachts, Ferari's, and houses in the Hamptons, Newport Beach and Antibes. It is gone.
“The forecloser has to prove that he had been assigned the rights to the mortgage prior to foreclosing, and in the state of Ohio, that right had to be properly recorded (in the appropriate office). It is more than a formality, but rather a necessary legal preliminary.”
It’s amazing that these loan companies overlooked a basic requirement that even us peons are aware of.
[The ruling is another HUGE victory for consumer advocate attorneys and homeowners in general.]
What about those of us who bought within our means and actually worked and paid our mortgages? Is it a victory for us?
These foreclosure cases should be evaluated individually.
Folks who were defrauded by predatory lenders are very different from flippers and entities who've been riding the equity/credit gravy train. The former are deserving of forgiveness, the later should be fed to the wolves they helped create.
I take it then, that lending institutions can no longer expect to be paid. If that is true, then there is no point in making loans.
Yes, they just stuck it in a matress and there it is. Sorry, but I spent too many years in California watching folks living the high life off of equity loans against the run-up in their real estate. No, they don't have the money. They spent it on the way up.
Furthermore, on any given real estate transaction, the average price gain is what? What fraction of that goes to middle men? Unless you owned the farm that Rockefeller bought in Pleasanton, very few people walk away from a transaction with million in their pockets. I know a few of those folks. They are not here at home in the US any more, and neither is there money.
[there were no “original” assignments rendering the sales of the mortgages to the trusts, in violation of the true sale obligations imposed by securities law. ”]
How does this affect the value of securitized instruments associated with these mortgages?
Does this mean that some A$$-Paper has no legal A$$?
And no, I don't condone the fact that folks might get away scott free with their houses, nor do I predict that as a likely outcome. I just posted the article to show that this is a wicked web indeed.
Most likely not. If the transfer of the mortgage from the original lender to the trust wasn't proper, the original lender will have to foreclose. The court's just saying 'you don't have standing to foreclose', it's not saying 'nobody can foreclose'.
That is the real question - are the banks holding what, in more polite times, was referred to as “wallpaper?”
If the original lender sold the note, then he has already been paid. He has no demonstrable injury and therefore no standing to sue either.
It is Wall Street that created this mess and the FR and SEC, etc. that looked the other way.
[We are dealing with the last lenders and last buyers in line and bam, the house of cards is coming down]
Say, doesn't someone normally get arrested and go to jail when their Ponzi Scheme falls apart?
Strange, why haven't we been reading about any arrests?
I think the Realtor is a dying thing. I think we’ll look on line, have 3D of every room and the neighborhood and bid/buy through EBay for a small %/fee.
In an age where the commissions of all other "brokers" has been cut to the bone I don't understand how the RE brokers fee stays at 6%. Airlines, it is as close to zero as one can get, stock brokers get a small fraction of what they used to get on a trade, etc.
[I don't think this mess is a victory for anyone at all]
Wait until the fire sale.
Somewhere in hell, Cecil Rhodes is grinning.
Doesn't matter. A pure rotten scam is a scam. The contracts are totally confusing, even to a NY attorney. They might as well be written in Latin. You will never find a realtor that could interpret the contract and explain it to a client making full disclosure of what could happen. Yes, there should be suffering by those sham artist, but it has to be done. First of all, one of the most grievous faults is overpriced real estate and selling knowing damn well that the price changes will eventually force disclosure. And the sad part is our law protects this most hideous crime in America.
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[A lot of Americans' and Europeans' pension funds are invested in this "high yield low risk" junk. ]
Sorta throws a monkey wrench into the whole "let's privatize social security" thing, don't it?
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