I’m saying the home owner has no standing. They were not damaged. They are just trying to get free money with the help of stinkin’ lawyers.
The investors are the ones that were cheated.
Let me make is simple for you. You sell a house to someone and then they turn around and sell it on contract to a third person. The person you sold the house too comes and ask you to keep an eye on the house and collect the house payments keeping 5% for yourself for your trouble. After a few months this person sells the contract on the house to another party and leaves the arrangement with you in place and he forwards (or possible not) the payments new owner of the contract. After a couple years go by the person who brought the home on contract loose their job and after a few months he is in default of the contract. Who forecloses? Not you you just collect the payments and pass it on you have no standing in the contract. The person that had sold the contract has no rights any more. The person that brought the contract did not record the transfer of the debit to him so how could he have standing?
Someone with out clear standing is trying to foreclose on their house. That is damage.
And it isn’t just those who have skipped payments. My friend back home almost lost his house because the loan was sold so many times, two banks thought they had the lien. And neither was paying the taxes. But someone was cashing the checks.
Lucky for him this was two years ago before the “crisis” and he knew a good lawyer. I know of a few people who didn’t and lost the house.