Foreclosure Cases Tossed out of Court
November 30th, 2007Friday, November 30, 2007
Over the last couple of weeks, Ohio Federal Judges Boyko and O’Malley in Cleveland, and Judge Rose in Dayton, have dismissed numerous residential foreclosures brought by the trustees of mortgage-backed securitizations on the grounds that the financial institutions have failed to demonstrate adequately their ownership of the mortgages being foreclosed.
The decision comes at a time when lenders are scrambling to pick up the pieces from bad loans, and borrowers are struggling to pay off debts that soared during the years of easy credit and predatory lending practices. Cleveland and the state of Ohio have some of the highest foreclosure rates in the United States, and the courts are swamped with thousands of legal actions against homeowners in default.
U.S. district Judge Kathleen M. O’Malley said she was enforcing a specific requirement of the federal court rules that demanded detailed information about the identities of lenders — and the history of a loan — involved in foreclosure actions. She said a review of cases pending before her showed that some of the plaintiffs seeking foreclosure have not been directly named in the loan documents that are at the heart of the cases filed in Cleveland. O’Malley said she wanted to see the complete history of a loan.
See the full story: http://stopforeclosurestop.com/judge-tosses-cases.htm
