Jump to content
House Price Crash Forum
Sign in to follow this  
South Lorne

New Us Foreclosure Troubles

Recommended Posts

http://www.bbc.co.uk/news/business-12140877

US foreclosures in new legal trouble

The ruling could affect other lenders - and other borrowers who have been foreclosed upon

Continue reading the main story

Two of the US's biggest mortgage lenders have had mortgage foreclosures cancelled in a case that could affect other banks.

The Supreme Court in Massachusetts ruled against US Bancorp and Wells Fargo in a widely watched case.

Backing a lower court ruling made in 2009, it said two foreclosure sales were invalid because the banks did not prove that they owned them at the time.

Bank shares fell sharply after the ruling dragging the wider market down.

The decision is among the earliest to address the validity of foreclosures done without proper documentation - so-called robo-loans because they were carried out by people who were unqualified and who often did not check a single line in the paperwork.

Retrospective application

After the robo-loan scandal was exposed last year some lenders, including Bank of America, JP Morgan Chase and Ally Financial temporarily stopped seizing homes.

Continue reading the main story

Start Quote

They (the banks) are going to have to be really precise and get everything in order. It doesn't leave a lot of wiggle room."”

Marty Mosby

Guggenheim Securities

Analysts believe this latest court action will further affect the foreclosure process in the US.

Marty Mosby, an analyst at Guggenheim Securities said: "A ruling like this will slow down the foreclosure process. They're going to have to be really precise and get everything in order. It doesn't leave a lot of wiggle room."

The case also applies retrospectively to people who have already been foreclosed.

Glenn Russell, a lawyer for one of the couples in the case said: "I'm ecstatic. The fact the decision applies retroactively could mean thousands of homeowners can seek recovery for homes wrongfully foreclosed upon."

'Utter carelessness'

Wells Fargo and US Bancorp lacked the authority to foreclose after having "failed to make the required showing that they were the holders of the mortgages at the time of foreclosure," wrote Justice Ralph Gants for the Massachusetts court.

Justice Robert Cordy said the banks had displayed "utter carelessness" in documenting their right to own the properties.

Courts in other US states are considering similar cases, and all 50 state attorneys general are examining whether lenders are forcing people out of their homes improperly.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.