Looks like banks may have painted themselves into a corner re: no mortgage ownership. [View All]

[dixiegrrrrl]

A recent post on this forum
Banks Lose Pivotal Massachusetts Foreclosure Case
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x85348

reported that
"US Bancorp and Wells Fargo & Co. lost a foreclosure case in Massachusetts’s highest court that will guide lower courts in that state and may influence others in the clash between bank practices and state real estate law."

Here is why ALL the Big Banks, ( not JUST the above banks) may be in big trouble on foreclosures and mortgages in general:

They all bought the original mortgages from by now defunct mortgage companies
( BOA bought up the bankrupt Countrywide, for instance)
or
from defunct other banks ( US Bank and Wells Fargo bought up the defunct Lehman Bros.
J.P. Morgan bought WaMu)

And HERE is the problem:

The mortgages were never transferred from the by now originating defunct/dead companies.
and the Court called them on it.
AND the banks cannot go back and get the mortgages. Too many dead companies between the original sale and now.

Here is recent article that is a delight to read, towards the bottom, of a conversation between the bank and the last company left alive about trying to get a mortgage.

http://www.cnbc.com/id/40999895/page/2/comid/3/