More Foreclosure Mischief: Bankruptcy Hijackings - 02/21/2012 - Yves Smith
Massachusetts Home Seizures Threatened in Loan Case: Mortgages Bloomberg (hat tip reader Deontos). This is super important and I wish I had time to write on this, but I suppose I’ll just wait for the decision. The highly respected Massachusetts Supreme Judicial Court is going to rule on whether the mortgage (the lien) can be separated from the note (the borrower IOU). Since the US Supreme Court over 100 years ago said the lien was a mere accessory to the mortgage, the odds are high they will say no. That means they might invalidate the foreclosure at issue, putting many other FCs under a cloud (but even if they rule for the borrower, I’d expect them to award damages rather than undo the FC; there is a lot of other law that treats sales out of bankruptcies and foreclosures as final). But a ruling in favor of the borrower would also deliver a fatal blow to MERS.
Is Obama Getting Serious About Bank Fraud? Real News Network (with Bill Black, hat tip reader Aquifer)