Massachusetts Home Seizures Threatened in Loan Case: Mortgages
Feb. 21 (Bloomberg) — The highest court in Massachusetts is poised to rule as soon as this month on a foreclosure case that could lead to a surge in claims from home owners seeking to overturn seizures.
The justices are deciding whether to uphold a lower court ruling that gave a Boston home back to Henrietta Eaton after Sam Levine, a 25-year-old Harvard Law School student, argued in front of the nation’s oldest appellate court that the loan servicer made mistakes when it foreclosed because it didn’t hold the note proving she was obliged to pay the mortgage.
“If the Massachusetts court says this defense works, that would have a huge ripple effect across the country,” said Kurt Eggert, a professor at Chapman University School of Law in Orange, California.
A ruling in favor of Eaton would show how a $25 billion settlement reached this month with state and federal officials still leaves banks exposed to liabilities tied to home repossessions. It also underscores the challenge of resolving a foreclosure process that Federal Reserve Chairman Ben S. Bernanke said in a study last month is plaguing the housing recovery.
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Finally, someone, somewhere, somehow…is realizing that FNMA or FHLMC is the same as any other disgorging financial entity! Power to the People!
A 25 yr old standing up to the legal system….well, God bless him. We finally found a lawyer with some kahunnas. His mother and father should be soooooo proud. I sure hope that it gets ruled in favor of Eaton.