Major Foreclosure Court Decision

On January 7, 2011, the Supreme Court of Massachusetts entered a major decision that may have far reaching consequences across the country. Though the case relies upon Massachusetts statutes and case law, it may be highly influential with judges in Florida.

In US Bank National Association, Trustee v Ibanez, Case NO SJC-10694(in a consolidated appeal with a second case), the Supreme Court reviewed many of the issues that have long been raised by foreclosure defense attorneys. These issues go to what has been commonly known as the “who owns the note” defense. As is typical of modern day home mortgages, the note was sliced and diced and sold through several investment trusts. Notes and mortgages have been mysteriously assigned without proven documentation. To satisfy these proof problems, some foreclosure firms in Florida have been accused of participating in the widespread providing of fraudulent documents to the court to establish that the foreclosing entity is the proper party. Affidvaits have been signed by “robo-signers” who sign without verifying huge numbers of affidavits to obtain foreclosure judgments.

Basically, the Massachusetts Supreme Court upheld the legal requirement that the foreclosing entity must establish with proper proof that it owns the note and received a timely and valid assignment and is the correct entity to foreclose.

This case may be of great benefit to Fort Lauderdale foreclosure attorneys and Fort Lauderdale bankruptcy attorneys.



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