“The problem, at least according to First District Judge Benjamin Simpson’s Tuesday ruling, is that electronic filing of MERS didn’t register the lien transfer in the Kootenai County records department. Since documenting ownership at the county level is required by state law, RCS wasn’t the legal owner of the mortgage and couldn’t foreclose.”


Premature foreclosure

Judge rules lending company didn’t follow proper steps to obtain couple’s home

COEUR d’ALENE – For Cynthia Griffin, the court victory is a small step in what has been a long fight.

Nevertheless, for the first time in months, the stress of not knowing if she and husband Matthew Griffin will lose their home is gone.

“It’s a real relief right now,” she said. “It makes me feel better that I don’t have something like that looming over my head. But it’s not a solution.”

That burden was erased thanks to a First District judge ruling this week that the lending company which claimed it owned the mortgage on the home didn’t follow the proper steps to obtain it, so didn’t have the legal right to foreclose on the Coeur d’Alene couple’s East Summit Drive house.

A small, but important step for the husband and wife.

But the Griffins’ attorneys, Jeff Crandall and Regina McCrea, think the order could affect thousands of Idaho homeowners who have already foreclosed or are in the process of doing so.

They said the same steps that Texas-based Residential Credit Services Inc. skipped when it acquired the mortgage from the former lender and now bankrupted American Home Mortgage are being done by other lenders across the state.

“It could be a fairly significant issue,” Crandall said. “It does call into question foreclosures that are pending and those that have already been completed.”

The suit stems from MERS, or the Mortgage Electronic Registration Systems, Inc.

Check out the rest here…

If I can get a copy of the ruling I will put it up…