Apparently, banks and investors did not file necessary paperwork when they traded home loans with each other. This becomes a bigger question as to who legally owns the loan. Apparently Wells Fargo and U.S. Bank tried to fix the paperwork after the fact but this Judge would have none of that!
This new ruling clears the way for other Massachusetts homeowners who lost their homes due to foreclosure and challenge the foreclosure if there was paperwork problems. Yep, the means anyone who bought a foreclosed house may be contacted by the former owner who might sue to reclaim their house.
Read more from the Sacremento Real Estate Voice
During the housing boom, lenders passed around mortgages as if they were whiskey bottles at a frat party. Notes were lost, destroyed, sold into multiple pools. Mortgages were not recorded and exorbitant fees were collected by the big firms on Wall Street.
Now that the bubble has burst, “lenders” are trying to collect on loans they do not own, in most cases never lent a dime on the transaction, have no right to, or were paid 30 times over in bailouts, insurance, credit default swaps, etc.
They are doing this because they can. They are steamrolling the courts rocket dockets because hardly anyone is contesting their foreclosures. Think about it. If you could go into a court and file thousands of foreclosures a week, and only a mere 10% challenged the authority of the foreclosing entity, what would you do if you were the greedy bankster?
The crises is even worse in non judicial states…
In almost every case these pretender lenders do not and did not own the loan. Almost all loans during the boom were securitized and it was investors that put up the money. Not the banks.
Now these “pretender lenders” are trying to steal the homes by filing fraudulent assignments, by the thousands, to process the foreclosures.
Don’t believe me? See for you yourself.
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