Delinquent home owners are finding a wild-card in saving their home from foreclosure. In court, more home owners are successfully arguing that their mortgage companies can’t prove they own the loan and don’t have the right to foreclose on them.
The Wall Street Journal reports: “In some cases, borrowers are showing courts that banks failed to properly assign ownership of mortgages after they were pooled into mortgage-backed securities. In other cases, borrowers say that lenders backdated or fabricated documents to fix those errors.”
In a few cases, home owners have even had their foreclosures reversed as courts blame lenders’ sloppy paperwork.
Source: “Banks Hit Hurdle to Foreclosures,” The Wall Street Journal (June 1, 2011)
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