The Judicial Integrity of the United States Court is "Priceless" - 27 More Foreclosures Dismissed

I am facing foreclosure ^ | November 16th, 2007 | Aaron Krowne & Moe Bedard

[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.

[MaxMax]

It's all Bush's fault.

/heh

[muawiyah]

Yes, they did.

That's why the scams didn't work all that well. Just a quick in and out ~ kind of a high tech snatch and grab, good for a couple of payments.

[AndyJackson]

nobody in D.C. gives a rip about you or your family

I live here (there) and I know. I have a dog, though some days I think he is a freeloading liberal as well. But, at least he is cute.

[AndyJackson]

though not yet properly established in the Court papers.

And that is what this is all about - sloppy lawyering.

[HereInTheHeartland]

“The ruling is another HUGE victory for consumer advocate attorneys and homeowners in general.”

The ability to foreclose is crucial for lenders.
Otherwise isn’t a secured debt anymore.

Instead of 6.000% mortgages, they will be 10.000%.

That would be incredibly stupid..

[expatpat]

Yup

[expatpat]

See #14.

[stephenjohnbanker]

“You have got to learn (by hard experience) that nobody in D.C. gives a rip about you or your family or our major economic problems. Once you get that under your skin . . . Pick and chose the politcos you support very carefully. They have all been bought and paid for with millions. “

Good evening, Senator. I have your special table waiting for you, sir. Your friends are waiting for you in the pub, sir.

[Travis McGee]

It was a scam, on all fronts. Lenders, brokers (mortgage and real estate) and borrowers all knew that the borrowers weren't actually qualified. But, if prices had continued to go up (paid for by whom, no one has answered), then the system would have remained solvant. We are dealing with the last lenders and last buyers in line and bam, the house of cards is coming down.

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

~~Ludwig von Mises

[Travis McGee]

So, looking over the lifetime of the assets, the houses, this financial hiccup isn’t much.

It will be more than a hiccup, it will be cadiac arrest, if this credit squeeze turns into a systemic disaster of cascading cross defaults.

[Travis McGee]

Say, doesn't someone normally get arrested and go to jail when their Ponzi Scheme falls apart?

All of the powers that be were in on it. Congress, for pushing the "houses for everyone" policy, and the banks for chasing "alpha" anywhere, including through the Looking Glass of MBS's, CDO's, ABS's etc.

[Travis McGee]

Securitizing the debt (mortgage) did not change the terms that applied to the debtor and the technicalities and intricacies of securitizing such debt will not stand as a technical loophole that errant debtors can escape through.

Perhaps not in the long run....if the credit system doesn't turn to concrete in the short run, as pandering judges do what they can to freeze liquidity.

[GaryLee1990]

These stupid mortgage companies have given loans to people that never qualified in the first place. That's why there is such a high foreclosure rate.

WatchingHillary.com

[VxH]

[ I have a dog, though some days I think he is a freeloading liberal as well. But, at least he is cute.]

 

Did somebody freeloading liberal watchdog?

 

During the House Financial Services Full Committee Hearing on "Recent Events in the Credit and Mortgage Markets and Possible Implications for U.S. Consumers and the Global Economy",  Chairman Barney Frank left the hearing in order to attend a meeting in support of legislation that would force American employers to hire homosexuals.   That says a lot about Barney's priorities.  

 

Barney "Fife" Frank.

Financial Services Watchdog

 

This watchdog only has one tooth.

Barney's boyfriend makes him keep it in his pocket

 

 

[VxH]

>>Did somebody freeloading liberal watchdog?

= Did somebody mention a freeloading liberal watchdog?

[SeaHawkFan]

In short, all the judge is requiring is that the plaintiffs in the foreclosure actions provide proof that they actually own the paper. The judge recognizes that foreclosure actions are proper and is only demanding that there is some evidence that the plaintiff is the proper party to the foreclosure action.

[SeaHawkFan]

And that is what this is all about - sloppy lawyering.

Can't really say it was sloppy lawyering when courts didn't require proof of standing in the past. It was the recording keeping when the paper was transferred that has been sloppy.

In the end, the lawyers are going to make more money straightening out the mess.

[County Agent Hank Kimball]

"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."

------

What a load of hooey.

NO ONE. I repeat NO ONE "knows" what the price of ANYTHING will be tomorrow much less a year or ten years from now. Anyone who does can become extremely wealthy investing in options, commodities or the stock market.

Businesses make unwise investments. Banks make unwise loans. Lenders take out unwise loans. It happens. It's all part of a dynamic, risk-rewarding economy.

The high-tech bubble burst horribly. The NASDAQ dropped what? Seventy percent from its high? There was pain, but life and our economy went on. The same will happen here.

It never fails to amaze me how the gloom-and-doomers can be proven so wrong so many times and yet they never change their tune. And some people still listen to them!

In the 80's the Japanese were going to make us an economic colony. Then the Savings and Loan crises was going to send us into a depression. Then it was the loss of manufacturing jobs. Then the trade deficit. Now the Chicken Littles are screaming about the falling dollar, oil prices and the real estate bust.

And you know what? All this, too, shall pass. So long as we resist protectionism and socialism, we'll continue to be the economic engine of the world. Falling dollar? Hey, my business exports high-tech, high-dollar equipment.....we can't keep up with the orders or find enough qualified people to fill positions.

Bet against the American economy at your peril.

Hank

[AndyJackson]

NO ONE. I repeat NO ONE "knows" what the price of ANYTHING will be tomorrow much less a year or ten years from now.

Boy are you whistling past the graveyard, and this is simply untrue. Most things you do know the price now, tomorrow, and next year, within a reasonable enough degree of certainty that one can plan things pretty well.

Most products have pretty well established costs because the input factors are well known. Commodoties prices vary, but for most finished products labor and capital expenses dominate. The other variable is profit which is not as predictable, but is generally a reasonably small fraction of total price.

The only thing that is uncertain to a large degree is in markets where the price is set by speculators. Real estate has been classic in this case.

One may not be able to predict price, but one can predict risk. When average prices are a significant multiple of average affordabiity one is headed into deep water. When that price is further supported only by 1.75% interest rates one has headed into the hurricane.

[Logical me]

Really? In my area, a two bedroom, one bath, living room, kitchen, dining area is selling for $375,000. This is on a small lot. Better try next time.

Most modest homes are now well above $500,000 and for most persons around a $3500 monthly payment plus taxes, homeowners insurance (a requirement) etc. just is beyond the range of an average two income family. Add upkeep, utilities, maybe you should consider hooey again.