Naked Capitalism | US Trustee Sides With Borrowers in Foreclosures With Questionable Assignments, MERS

Naked Capitalism – US Trustee Sides With Borrowers in Foreclosures With Questionable Assignments, MERS

As we’ve suggested, a not-well-recognized effect of the widespread publicity on robo-siging abuses and more recently, the widespread failure of securitization industry participants to adhere to their own agreements is more pushback in the courts. It takes a while for new information to trickle into courtroom strategies, but as the abuses get more press, it isn’t just attorneys for borrowers that are taking a new stance, but also some judges and other official watchdogs.

An example today comes via the US trustee, which is a Department of Justice overseer of bankruptcy courts, in two cases in Albany, New York (hat tip April Charney). In both, the US trustee has filed responses which are effectively in support of the debtor (the bankrupt borrower) and in opposition to creditors, which in this case are servicers claiming to act on behalf of securitization trusts. The issue? The parties trying to foreclose haven’t presented a document trail that the bankruptcy trustee finds persuasive.

Both cases, one with GMAC, the other with BAC as the servicer, both involve a foreclosure mill, the Baum Law Firm, which had been sanctioned and fined for submitting pleadings with documentation defects. As the first pleading, the one with BAC as plaintiff, noted “The state court judge called the Baum Firm’s actions ‘reprehensible.’”

The underlying issue is pretty simple, a failure to prove standing.

Check out the rest here…



US Trustee Response to Debtor’s Motion Objecting to BAC Home Loans Proof of Claim

US Trustee Response in Support of Debtor’s Objection to GMAC Proof of Claim

3 Responses to “Naked Capitalism | US Trustee Sides With Borrowers in Foreclosures With Questionable Assignments, MERS”
  1. l vent says:

    What has been happening to our country has sparked a memory of George Orwell’s dystopian novels: Animal Farm and 1984. You may also use Wikipedia to get an insightful overview of these novels. You also may want to check out It is all pretty interesting.

  2. l vent says:

    Last night on CNBC’s Kudlow report, Kudlow and his” guests” were discussing the Mass. Supreme Court ruling and how it might effect future foreclosures and the markets.(the big banks) His “guests” are obviously being paid by the wall street and bankster crooks who run this country because their responses to the questions brought on a vile spewing of vicious attacks against the lawyers with these “guests” saying this is what lawyers do and this is all political. Nothing about all of the FRAUD that has been committed by the BANKKSTERS and WALL STREET in their HEIST of AMERICA in the biggest PONZI SCHEME in HISTORY followed by the INTENTIONAL FINANCIAL COLLAPSE and the ROBBING of OUR WEALTH and JOBS. They went on to say that there must “NOT BE” a foreclosure moratarium or the housing market will continue to freefall and the credit markets will freeze up and there will be no more lending. All I could possibly say to that in a gasp was, WOW, is that the best FAKE THREAT they could come with because that sounded pretty weak . The housing market is in a freefall now and has been because of their crimes, and the credit markets have been frozen up by them for some time now down here on MAINSTREET. I guess we have all come to expect such LIES to be spoken through our Facsist controlled mainstream media. Even as the truth is being slowly, and I mean slowly, leaked out ,they are all still trying to cover up the truth. We know the truth will eventually set all of us free from the facsist dictators who are running this country. I guess they do not to realize they are doing more harm to themselves than good by continuously lying and covering up their crimes against their own people and are causing the people to get madder and more defiant. This is however, good for all of us, not so good for all of them. THE MORE THEY LIE, THE MADDER WE THE PEOPLE WILL AND ARE GETTING.

  3. leapfrog says:

    Lots of good news this morning for those of us in the battle with the big banksters/MERS. Keep it coming! On a more sober note though, what are the politicians/lobbyists going to do to help their bankster pals? They must really have their panties in a bunch about now. Anyone care to speculate?

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