How several local judges are holding Wall Street’s securitaztions accountable using the rule of law
Hopefully this will get a lot of press as it certainly appears that using the rule of law – the little guy will get to protect themselves from banks who take short cuts and who want their cake, have you pay for it, and get to eat it too.
Your mortgage is “packaged” with other mortgages into a financial instrument. This process is called securitization. It seems the investors who own these new securities – called mortgage backed securities [MBS] do not file the appropriate paper work for deed transfers.
Three plain talking judges, in state courts in Massachusetts and Kansas, and a Federal Court in Ohio, have drilled down to the “straw man” aspect of securitization. The judges’ decisions have raised serious questions as to the legality of hundreds of thousands of foreclosures that have transpired as well as the legal standing of the subsequent purchasers of those homes, who are more and more frequently the Wall Street banks themselves.