Mass. court rules for homeowners; banks can’t foreclose

In a ruling likely to have nationwide impact, the Supreme Judicial Court of Massachusetts ruled against Wells Fargo and US Bancorp, saying that the banks could not prove they held the mortgages to two homes they were attempting to foreclose on.

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

In a concurring opinion, Justice Robert Cordy lambasted "the utter carelessness" that the banks demonstrated in documenting their right to own the properties.

The decision applies retroactively, so others in Massachusetts may be able to recoup money from banks that foreclosed without proper documentation.

The problem seems to be that the loans had been securitized, and the paperwork was either lost or not handled properly. Your best bet is to read the full story.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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2 Responses to Mass. court rules for homeowners; banks can’t foreclose

  1. Banks love to play the victims when they are caught red handed. They should of been more organized to avoid any situation. Bank of america also had the same issues with trying to claim foreclosure on home owners that they could not prove that wasn’t under their loan.

  2. The banks definitely need to get their act together–it is all getting very ridiculous. Furthermore, the government has to stop bailing them all out when they are engaging in practices that are unethical.

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