This should not be such an important decision. The
fact that it is heralded as important shows how little is expected
from banks in the way of legal documentation for their claims.
Thus far into the great real estate meltdown, banks may have been able to get
away with little or no proof that they actually own the mortgage upon which
they are foreclosing. This may be changing. The issue of
documentation has been an issue in Bankruptcy Courts where mortgage
companies have filed proofs of claim with inadequate documentation to prove
actual ownership of the loan. The reason for this problem is simple: the
mortgages have been bundled and re sold and then there is often another sale or
two to the entity which is now attempting to assert its claim.
"In a decision that may affect foreclosures nationwide,
Massachusetts' highest court voided the seizure of two homes by Wells Fargo
& Co and U.S. Bancorp after the banks failed to show they held the
mortgages at the time they foreclosed.
Bank shares fell, dragging down the broader stock market,
after the Supreme Judicial Court of Massachusetts on Friday issued its
decision, which upheld a lower court ruling.
The unanimous decision is among the earliest to address
the validity of foreclosures done without proper documentation. That issue last
year prompted an uproar that led lenders such as Bank of America Corp, JPMorgan
Chase & Co and Ally Financial Inc to temporarily stop seizing homes."
Here is a link
Read more at
TexasLawyerBlog.com, a blog by Michael McBride.