Good News! 27 More Foreclosures Dismissed

[Joanne98]

By Aaron Krowne & Moe Bedard

In a decision piggy-backing on Judge Boyko’s recent Deutsche Bank ruling (announced on this site Tuesday), Judge Rose has thrown out another batch of foreclosures, making the following summary remarks:

“This court is well aware that entities who hold valid notes are entitled to receive timely payments in accordance with the notes. And, if they do not receive timely payments, the entities have the right to seek foreclosure on the accompanying mortgages.

However, with regard the enforcement of standing and other jurisdictional requirements pertaining to foreclosure actions, this court is in full agreement with Judge Christopher A Boyko for the Northern District of Ohio who recently stressed, ‘That the judicial integrity of the United States District Court is ‘Priceless.’”

The ruling is another HUGE victory for consumer advocate attorneys and homeowners in general.

A pdf file of the full ruling is available here.

Jacksonville Legal Aid attorney April Charney remarked to us regarding the two Ohio decisions:

As to the real ramification of the Ohio decision, aside from slowing the foreclosure trains, is that the fact that there were no “original” assignments rendering the sales of the mortgages to the trusts, in violation of the true sale obligations imposed by securities law. ”

For more comments by April and us on this foundational issue of these rulings, see our next post. There we also address some criticisms and critiques we’ve received since our original coverage.

http://iamfacingforeclosure.com/blog/2007/11/16/the-judicial-integrity-of-the-united-states-court-is-%e2%80%9cpriceless%e2%80%9d-%e2%80%93-27-more-foreclosures-dismissed/

:applause:

[KharmaTrain]

1. Repealing The Bankruptcy Bill...A Priority

Most of us who opposed this awful bill saw how regressive things could become and how short-sighted this bill was. There's only so much blood one can squeeze from a stone...only so far you can push a person into financial servitude before they just can't pay any longer. The banks and lenders thought they could use the courts to be their new bill collectors but it's not turning out that way. Besides the judge who found possible breaches, the number of defaults is overloading a system...moving too slowly for the lenders who are now faced with billions in write-offs and even more billions in empty real estate.

The upside...if there is one...is that the crisis is forcing lenders to negotiate down interst rates and balances...prefering to take the loss at the "head-end" than add it to the growing legal pile.

The ultimate solution is the repeal of the bankruptcy bill and caps on consumer lending rates.

[sam sarrha]

2. bankruptcy bill was part of a Ponzi RICO scheme that went bad

[sam sarrha]

..

[sam sarrha]

3. ..

[SoCalDem]

4. "Say it again, Sam"

:rofl:

[gasperc]

5. Banks still make money in foreclosure

sure they don't want to deal with it if the don't have to but for the most part they still come out ahead. Say someone been making payments for $1000/month for 2 years, that's $24,000. The primary lender has only 80% in the original price so even if they sell the home at a loss chances are they are breaking even or even taking home a bit of profit.

Now, I don't know about all these write downs and losses the banks have been taking but I suspect they are mostly losses from the huge profits they would have taken if ordinary consumers kept up with the banks premise, namely fuck you, pay me.

[Matariki]

7. The bank doesn't get the entire value of the house.

They sell it in auction and the mortgage is paid off, plus some fees & penalties. If it's auctioned for less than the value of the mortgage the person still owes the bank but it's more likely the bank will have to write off the loss.

[KharmaTrain]

8. Prices Are Crashing Faster Than What They Gain

Recently I chatted with the loan officer at my friendly neighborhood bank and he had the look of death-warmed over on him. He's got a lot of foreclosures...deliquent properties which are either in full or partial default (they haven't seen money for a while), ones pending in court and a growing list of others that could fall into the "90 day hole". I'm sure the bank could make a buck on a foreclosure, but from whom???

With a glut of houses in a depressed market, the banks aren't going to make their money back that fast...especially if property values continue to fall. In our area, local property taxes have shot up to make up for the shortfall in state and federal money...increases the banks have to swallow while the property sits vacant/unsold.

Trust me, this wasn't what the robber barons in the industry had in mind when they pushed last year's bankruptcy bill...they expected this ponzi scheme would be bailed out by the government...that hasn't happened cause the government doesn't have the money/credit to bail them out.

By the time banks realize a return on the large number of foreclosures, they could be foreclosed themselves.

[spoony]

6. k and r for all the stomped on consumers

Last week I visited family in a development that's about a year old. Already in their cul-de-sac three people lost their homes and they likely won't be the last. Rows of for sale signs are a sad and lonely sight.

[Giant Robot]

9. We all know this step forward will last only as long as

It takes the loan industry/mortgage hedge fund managers/everyone else making a buck here to make Congress pass more legislation against the consumer. Congress will dance like a good monkey for its meal when they get that call. I can even hear it being announced now...."Legislation to promote responsible home ownership." Yeah, I could be in Congress now.

Sorry. I am in a foul mood and its coming out all over.