About Me
“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Written by Craig D. Robins, Esq.I have discussed many times this year about the concept of defending a foreclosure proceeding by objecting to a mortgagee’s standing to bring the foreclosure suit on the basis that they do not actually own the mortgage. Many New York Foreclosure Suits Are Dismissed Because They Are Defective .
A recent comment that appeared on the on-line version of the Wall Street Journal posed an interesting take on this:
The real estate bubble was fueled, in large part, by mortgage companies who loaned to anyone on anything, then sold the paper to the banks — who repackaged this paper to sell to other investors.
Everyone passing around the paper like players at the roulette table. No-one checked the bona-fide representations of the borrowers. No-one checked the collateral. Everyone passed around paper while the little ball raced around the wheel of fortune.
If these gamblers were too busy in the casino to make sure their paperwork was properly updated and recorded . . . .tough!
That leads to the fundamental principal in any legal case pending in a court of law: the plaintiff must prove its case. Banks and mortgage companies must certainly adhere to the law and are now being called to task by the court when they fail to do so. See my post: Judicial Sentiment Against Foreclosing Banks Reaching All-Time High .
If a mortgage lender wants to bring a foreclosure proceeding, it must be able to demonstate that it actually owns the papers it is seeking to foreclose on. Homeowners who are being sued in foreclosure should consult legal counsel to ascertain how to protect their rights.
