Sloppy Foreclosure Procedures Can Void Foreclosure Sales
In a new case expected to strengthen the claims of homeowners defending foreclosure debt lawsuits around the country, sloppy foreclosure procedures by two banks in Massachusetts have led the state’s high court to void the resulting foreclosure sales.
The case comes on the heels of the banking industry’s rampant, discredited “robo-signing” practices and an ongoing multi-state investigation into improper foreclosure documentation.
In the January decision, the Massachusetts Supreme Judicial Court found that U.S. Bank and Wells Fargo failed to prove that they owned the mortgages at the time of foreclosure.
The case could have an impact in Missouri, which like Massachusetts, is a “nonjudicial” foreclosure state. Under Missouri foreclosure rules, the mortgage holder does not need a judge’s permission to start foreclosure proceedings and makes the foreclosure faster for the banks.
But in both Missouri and Massachusetts, foreclosure lawsuits may be stopped when banks do not follow the foreclosure rules and provide proper paperwork to document the chain of transfers.
If you are the target of a mortgage foreclosure, contact the lawyers at the S.E. Farris Law Firm. Call 314-A-LAWYER (314-252-9937) today for a free consultation or fill out our online contact form.