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Court: Busted Securitization Prevents Foreclosure
Daily Finance ^ | 04/01/2011 | Abigail Field

Posted on 04/18/2011 3:40:01 AM PDT by Neidermeyer

On March 30, an Alabama judge issued a short, conclusory order that stopped foreclosure on the home of a beleaguered family, and also prevents the same bank in the case from trying to foreclose against that couple, ever again. This may not seem like big news -- but upon review of the underlying documents, the extraordinarily important nature of the decision and the case becomes obvious.

No Securitization, No Foreclosure

The couple involved, the Horaces, took out a predatory mortgage with Encore Credit Corp in November, 2005. Apparently Encore sold their loan to EMC Mortgage Corp, who then tried to securitize it in a Bear Stearns deal. If the securitization had been done properly, in February 2006 the trust created to hold the loans would have acquired the Horace loan. Once the Horaces defaulted, as they did in 2007, the trustee would have been able to foreclose on the Horaces.

And that's why this case is so big: the judge found the securitization of the Horace loan wasn't done properly, so the trustee -- LaSalle National Bank Association, now part of Bank of America (BAC) -- couldn't foreclose. In making that decision, the judge is the first to really address the issue, head-on: If a screwed-up securitization process meant a loan never got securitized, can a bank foreclose under the state versions of the Uniform Commercial Code anyway? This judge says no, finding that since the securitization was busted, the trust didn't have the right to foreclose, period.


TOPICS: Business/Economy; Government; News/Current Events; US: Alabama
KEYWORDS: fraudclosure; housingbubble
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To: org.whodat

>>If you were and are a real estate agent and made these misstatements of fact,<<

Be specific. I don’t know which statements you are referring to, nor do I know on what authority or information you base your claim.


121 posted on 04/19/2011 2:27:55 PM PDT by RobRoy (The US today: Revelation 18:4)
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To: org.whodat; RobRoy
If you were and are a real estate agent and made these misstatements of fact, and I lived in your state, I would have you in front of the state board to have you license permanently removed.

If you appeared before any state board with the tenuous grasp on reality you have shown on this thread...you would be dismissed from the proceedings within minutes and someone would be having to give long explanations as to how you ever got admitted to any proceeding given your current state.

Absolutely you would be representing yourself because even OJ's lawyers wouldn't touch your rantings.

Perhaps you could find out who Crystal Mangum hires - you and she are on pretty much the same level.

122 posted on 04/19/2011 2:54:36 PM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: MrEdd

You have a very light grasp on reality.


123 posted on 04/19/2011 3:50:55 PM PDT by org.whodat
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To: org.whodat
You have a very light grasp on reality.

Which one of us accurately forcast the popping real estate bubble in the face of frantic denial here for the past few years, and which one of us accurately forecast that the enemies of america would use jet fuel in a major attack against America after Bush 41 extensively deployed FAE weapons in 1990 and 91?

I am pretty much okay with the record my earlier prognostications have produced.

You have been shown to be off your tree by any number of posters on the housing bubble threads.

It hasn't mattered what the courts have said or what the market has done or what legal documents are presented and explained.

With you it is always that people who correct you are all wrong.

They are not.

You have demonstrated zero credibility.

Show me a post from 2007 or before where you explained that the housing market was going to fall, why it was going to fall, and that it was going to stay down for a long time - as we are seeing.

If you can do that - you can be my peer. Thus far, you appear to be an angry and unstable babbler.

124 posted on 04/19/2011 4:03:22 PM PDT by MrEdd (Heck? Geewhiz Cripes, thats the place where people who don't believe in Gosh think they aint going.)
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To: MrEdd

You have now demostrated an even lighter grasp on reality. There has not been one word by myself are anyone else about your voodoo statements. My posts on this thread are about the reality of the real world and real estate financing. I could care less about what you claim may are may not have happened.


125 posted on 04/19/2011 4:19:00 PM PDT by org.whodat
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To: Neidermeyer

Don’t come to California and try any of your real estate theft bullshit, you’ll lose big time!

One attorney that did got his ass thrown in jail!


126 posted on 04/19/2011 4:31:23 PM PDT by dalereed
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To: org.whodat

five years to sue on a contract, seven years for adverse possession.


127 posted on 04/19/2011 4:34:04 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: PapaBear3625

there is an owner of the property.

unless you are speaking of the note, then that issue is different than abandoned property. It is a unenforced and unclaimed debt that will eventually be time barred.


128 posted on 04/19/2011 4:36:52 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory

Neither of which are mortgages, and the adverse possession changes from state to state and with degree of color of title.


129 posted on 04/19/2011 4:51:09 PM PDT by org.whodat
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