“Benson conducted a 90-minute hearing in the Geddes lawsuit in which he intently grilled both sides over various legal questions. But what seemed to sway him was the admission by attorneys for the foreclosing entities that they were not sure who actually owned the couple’s mortgage note.”

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Judge Sides With Homeowners in Foreclosure Suit

U.S. District Judge Dee Benson left open a legal window Wednesday for two South Jordan residents facing the loss of their house, one of the first cracks in federal court for Utahns trying to save homes from the wave of foreclosures swamping the state.

Benson declined to grant a motion to dismiss the lawsuit brought by Michael and Dana Geddes to halt the foreclosure on their home while they try to negotiate a loan modification. That means the couple and their attorney can proceed with gathering testimony and documents to try to prove their contention that the foreclosure process to which they’re being subjected does not comply with Utah and federal laws.

By one estimate, Utah could be facing 40,000 foreclosures this year, the blowback from the financial crisis that was created by an out-of-control mortgage process where many loans were granted with greatly fluctuating interest rates or to people who normally would not qualify.

Check out the rest here…

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4closureFraud.org