1st November 2013
by Rich Vetstein
Today, the Massachusetts Supreme Judicial Court (SJC) ruled against foreclosing lenders and those who purchased foreclosed properties in Massachusetts in the controversial U.S. Bank v. Ibanez case. Here is the link for the decision. I’ve posted the decision below, and I’ve done a video blog embedded below.
For those new to the case, the problem the Court dealt with in this case is the validity of foreclosures when the mortgages are part of securitized mortgage lending pools. When mortgages were bundled and packaged to Wall Street investors, the ownership of mortgage loans were divided and freely transferred numerous times on the lenders’ books. But the mortgage loan documentation actually on file at the Registry of Deeds often lagged far behind.
In the Ibanez case, the mortgage assignment, which was executed in blank, was not recorded until over a year after the foreclosure process had started. This was a fairly common practice in Massachusetts, and I suspect across the U.S. Mr. Ibanez, the distressed homeowner, challenged the validity of the foreclosure, arguing that U.S. Bank had no standing to foreclose because it lacked any evidence of ownership of the mortgage and the loan at the time it started the foreclosure.
Mr. Ibanez won his case in the lower court in 2009, and due to the importance of the issue, the Massachusetts Supreme Judicial Court took the case on direct appeal.
The SJC Ruling: Lenders Must Prove Ownership When They Foreclose
The SJC’s ruling can be summed up by Justice Cordy’s concurring opinion:
“The type of sophisticated transactions leading up to the accumulation of the notes and mortgages in question in these cases and their securitization, and, ultimately the sale of mortgaged-backed securities, are not barred nor even burdened by the requirements of Massachusetts law. The plaintiff banks, who brought these cases to clear the titles that they acquired at their own foreclosure sales, have simply failed to prove that the underlying assignments of the mortgages that they allege (and would have) entitled them to foreclose ever existed in any legally cognizable form before they exercised the power of sale that accompanies those assignments. The court’s opinion clearly states that such assignments do not need to be in recordable form or recorded before the foreclosure, but they do have to have been effectuated.”
The Court’s ruling appears rather elementary: you need to own the mortgage before you can foreclose. But it’s become much more complicated with the proliferation of mortgage backed securities (MBS’s) –which constitute 60% or more of the entire U.S. mortgage market. The Court has held unequivocally that the common industry practice of assigning a mortgage “in blank” — meaning without specifying to whom the mortgage would be assigned until after the fact — does not constitute a proper assignment, at least in Massachusetts……………………..
By Thomás Aengus OCléirigh
This case could show the way for the many thousands of hoodwinked Irish mortgage holders and those who have had their homes stolen from them by the corrupt banks. A Friend of mine who is in the legal profession tells me that is was the norm for banks to bypass the paperwork in order to approve mortgages and that the legal paperwork was not up to date in many repossessions because of the boom time irregularities in the paperwork.
I personally had the good fortune to pay off my mortgage and when I asked the bank for my deeds they sent me out someone else’s deeds after months of constant badgering them , I got my own deeds. All this from one of the so called pillar banks of this Ba-NAMA republic !This same Bank is now ripping off its customers with penal charges and I fear as the Irish market is now going to be abandoned by the other international banks and we are all going to be left in the hands of these gangsters and we will get screwed all over again! We have Labour, FG and FF to thank for this as they all have “Public Directors” serving on the various banks feathering their own coffers at the expense of the Irish public!
The time has certainly come for a totally different consumer friendly financial system that does not require ones home to be a financial death trap and a means for the corrupt financial institutions to enslave their customers!
see for example:
I have been part of KIVA for many years now and no doubt I have helped other people to secure a living by micro financial their ideas. We need to start a similar micro finance system here in Ireland
15 th Oct 2013
PAUL MELIA– 15 October 2013
Couple bring test case over mortgage ‘they can’t pay’
A COUPLE claiming they cannot hope to meet their mortgage payments and give their child an education are taking on their bank in the High Court.
Also in this section
Mortgage Protection from €10 month. Compare 7 Companies. Instant Quote.
Roy and Patrice Keating, from Macroom in Co Cork, have filed a plenary summons against Bank of Ireland in a “representative case” taken on behalf of the 1,000 members of the Debt Options group.
The organisation representing 1,000 distressed borrowers is seeking damages of €1m from the banks as part of a class-action suit.
Debt Options Ireland said the test case lodged with the High Court would prove that banks broke contracts, breached regulations and were involved in misrepresentation.
Spokeswoman Claire Cullinane said the amount of money the Keatings were facing paying in mortgage payments meant they would not be able to meet payments and “give their child an education”.
“We want to push for this case to be heard in the next six months,” she said.
She added that they had handed in two pages of claims to the court in relation to alleged actions by Bank of Ireland, which they believe breaks the Code of Conduct of the Central Bank, and amounted to gross misrepresentation.
She said the group had been working with Roy and Patrice Keating for some time.
“The barristers and solicitors we work with chose their case as one to go forward with. They’re a young couple, with a young daughter,” Ms Cullinane added.
She said that cases had been built using expert legal advice, but that the people taking the cases were likely to represent themselves in court.
Some 120 summonses had been issued in October last year, and a total of 1,000 cases had now been lodged, she said. Cases were being taken against all the major banks, she added.
“It’s across all banks. Our summonses say the banks have broken their contracts, and each summons is looking for €1m apiece in costs and damages. Everybody in the country with a mortgage should be taking a case against their banks.”
The cost of lodging papers is €138, but it would cost “several hundred thousand euro” to fight each case, she said.
The Irish Banking Federation said it had not had any contact or engagement with Debt Options to date. Bank of Ireland could not be reached for comment…..
Ben Gilroy’s front door:
In anticipation of an upcoming section of the site, which will be entitled “Templates”, we have decided to share one trick with you a little early. The document in the image below hangs on Ben Gilroy’s front door, and is called the “Removal of Implied Right of Access”.
Implied right of access is what is known as an implicit right. An implicit right is one in which a person feels they have the right to do something, despite that right never having been directly granted to them. An example of this is your postman. Your postman has the implied right to enter onto your land, walk or drive up to your door, and insert letters into your letter box……
full article at source :http://peopleforeconomicjustice.com/removal-of-implied-right-of-access/
I am setting up a special tab on my blog to help spread the news that the National controlled media wont publish. If you are in position of ANY information regarding any Evictions then please let us know so we will let everybody else know. so please anywhere in Ireland if you know of a pending evection then please send notice to us here at Machholz Blog and we will post it around the web. Also any of our citizen reporters please send in your photos and videos and we will post them for all to see .These Corrupt Bank Puppets (Sheriffs personal) should be identified and shamed! If you can send photos of any Sheriffs or their Personal or any other “Helpers” we will be delighted to post them here and shame these same thugs who are after all working for corrupt gangsters working in Toxic and bankrupt Irish Banks. Stand up and fight back against these thugs!
our first report is from the Anti Eviction March in Dundalk Co Louth covered by fellow blogger from
I just returned from the Anti Eviction March in Dundalk Co Louth, great day, great weather, great people. It was fantastic to see people from all over Ireland present, the folks from Anti Household Charges from Carlow/Kilkenny folks from Trim and of course Dundalk itself, it would have been nice to see more people out but with the best of intentions and without mainstream media coverage and promotion it is difficult to get the word out, nonetheless I would estimate 70/100 people and we visited 10 Chapel Lane, the dwelling of Eugene Dooley (commonly none as Doolander) which was violently stolen by the Sheriff in Dundalk Mairead Ahern and her thugs with the assistance of An Garda Siochana last week.
It was important that the people of Dundalk were aware that there is a Sheriff in their midst and so we visited the home of Mairead Ahern in the sleepy village of Blackrock Co Louth and lo and behold An Garda Siochana were present there also.
full article at source: http://awakenlongford.wordpress.com/2012/10/20/todays-anti-eviction-march-dundalk/
- The ghost houses of Ireland: Foreclosure and eviction (awakenlongford.wordpress.com)
- Revenue staff questioned over illegal fuel find (independent.ie)
- Two Revenue staff may be suspended after raid on oil laundering plant (independent.ie)