And this time it’s not on whether homeowners paid, it’s whether there’s standing.
“If we find any foreclosures in error, we will fix them,” JPMorgan Chase said.
But while banks may have booted a few robo-signers and tightened up some lax procedures, one question at the heart of the foreclosure mess refuses to go away: whether institutions trying to take back a property can prove they even have the right to foreclose at all.
Uh huh. And what’s “in error” JPMorgan? I know, I know – it’s whether the borrower paid, right?
The issue is whether you have the legal right to foreclose. It’s not whether someone borrowed money, it’s whether you legally own the promissory note that the borrower signed.
“The United States Trustee Program is engaged in an enhanced review of mortgage servicer filings in bankruptcy cases to help ensure the accuracy of the claim to repayment,” she said. She declined to comment on specific filings.
This is the correct issue. Who holds the paper – for real? Not who claims to – who actually does.
“For years, the trustee would always take the creditors’ side,” Mr. Rothbloom said. “My strong opinion is the U.S. trustee’s perspective is that they exist to stop borrowers from cheating banks. Perhaps they are coming to the realization that banks can also cheat borrowers.”
You must be kidding! Banks would never lie, right? They’d never launder money for criminal drug gangs, they’d never rig bids in municipal debt auctions, and they’d most-certainly never swear over 150,000 times to something that wasn’t true, right?
So they’d also never falsely claim to have the original documentation proving their right to foreclose when they don’t – right?
In his experience, Mr. Shaev said: “The attorneys who represent the banks invariably state that they will get the collateral file for us and prove that the banks had possession of the documents at the appropriate time. But then when we review the file it doesn’t show that at all.”
Perhaps – just perhaps – they might.