Consumer Law

Massachusetts High Court Voids Foreclosures For Lack Of Proper Documentation

By Brian Wolfman

Just a few hours ago, the Massachusetts Supreme Judicial Court voided foreclosures by megabanks U.S. Bancorp and Wells Fargo because neither could document title to the properties. As the New York Times explains:

In a ruling that may affect foreclosures nationwide, the Massachusetts high court has voided the seizure of two homes by Wells Fargo & Company and US Bancorp after the banks failed to show that they held the mortgages at the time of the foreclosures. Friday?s decision by the Supreme Judicial Court of Massachusetts, which upheld a lower court ruling, is among the earliest to address the validity of foreclosures conducted without full documentation. That issue prompted an uproar last year that led lenders like Bank of America, JPMorgan Chase and Ally Financial to temporarily stop seizing homes. Courts in other states are considering similar cases, and all 50 state attorneys general are examining whether lenders are forcing people out of their homes improperly.

Read the Supreme Judicial Court's ruling here. A concurring Justice began his opinion by referring to "the utter carelessness with which the plaintiff banks documented the titles to their assets."

Full post as published by CL&P Blog on January 07, 2011 (boomark / email).