Banks lose important ruling on foreclosures

[brentspeak]

Source: Reuters

NEW YORK — In a ruling 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 U.S. stock market, after the Supreme Judicial Court of Massachusetts on Friday issued its decision, which upheld a lower court ruling.

snip

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

Friday's decision may also threaten banks' ability to package mortgages into securities, including whether loans that were transferred improperly might need to be bought back.


Read more: http://www.msnbc.msn.com/id/40965934/ns/business-real_estate/

[villager]

1. Surely society's owners are lining up their bagmen on the Supreme Court to overturn this...

n/t

[Kingofalldems]

2. I'm sure Scalia and crew can't wait to get their hands on this one

[snappyturtle]

3. This is WONDERFUL news! nt

[no_hypocrisy]

4. Banks can't have it both ways, i.e., have an interest in property but no

documentation to prove it. No papers, no foreclosure.

[unblock]

5. it's amazing that we even have to celebrate this as a victory

wow, a court said you have to have a lien on a house in order to foreclose.

derrr, no, really? you mean you can't just walk up to any old house and sell it out from under the owners?

we actually needed a court to clarify this?


cuz if there's still any doubt, i wuz thinking about selling all of microsoft out from under bill gates. i'm not greedy, i'll just keep the $30 billion my records say he owes me, he can have the rest. if he complains, i'll just say i lost the paperwork. besides, he's a deadbeat.

[lark]

6. K&R

Whoohoo. Of course, once this goes to the Supreme court, I'm sure the good little paid corporatists will honor their masters wishes and rule that banks can foreclose on anyone - even if they don't have the paperwork. Kagan sure as hell better not excuse herself on this one!!!!

[Saxon]

7. No Appeal

This was a ruling by the Supreme Judicial Court of Massachusetts. There is no higher court in
Massachusetts to appeal to.
And, since it's a state issue the US Supreme Court has no standing.
Of course one may remember elections are a State issue as well which didn't seem to mater in Gore V. Bush.

[lilyrl]

8. Good.