[expatpat]

It is only a temporary victory. The judges are telling the foreclosers that they have to be more rigorous in proving their ownership rights re the mortgage notes. As soon as they do that, the foreclosures will resume.

[AndyJackson]

If you read the judge's opinion and order it is not quite so simple. 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. There are interesting articles indicating that the issue about rights to the underlying asset vs rights to the stream of payments is rather clouded. See False security? Corporate insolvencies are testing whether securitization is a stable structure or a flimsy facade - Bankruptcy 2003

[B4Ranch]

I tend to agree with you. When they dig out the original paperwork they will be able to substantiate their claims.

[muawiyah]

Alternatively, many of the companies who think they held mortgages find out they got hornswaggled and they go to the cops (in a whole lot of countries).

Doesn't mean someone won't be foreclosing on someone, but in some cases the party actually holding the paper might want to keep his mouth shut until this blows over ~ lest he be caught up in the search for and prosecution of persons engaged in fraudulent behavior.

Back a decade or so ago when many banks were unbundling the mortgage from the servicing of the mortgage account, crooks got loose and many homeowners found their monthly payments didn't get registered ~ just stolen.

I have no problem believing some of the major mortgage companies in that smaller scandal got burned this time as well

That's because I've observed that in large institutions (public or private) folks who stupidly let money wash down the drain are frequently promoted to even more responsible positions provided they look good in a suit.