By Brian Summerfield, Online Editor, REALTOR® Magazine
A decision this afternoon from the Massachusetts Supreme Court could have huge implications for future foreclosures. In a unanimous decision, the jurists rejected Wells Fargo and US Bancorp’s attempted seizure of two homes due to a lack of proper documentation.
Justice Robert Cordy said the “utter carelessness” in producing paperwork that would prove the banks owned the properties prompted the court’s ruling. Although the verdict only affects foreclosures in that state, it could influence the decisions of courts in several other states as they review similar cases. Additionally, attorneys general in all 50 states have previously expressed that they would look into whether financial institutions are erroneously foreclosing on home owners.
This ruling comes amid a recent spate of embarrassing, wrongful foreclosures and concerns about title complications caused by the Mortgage Electronic Registration Systems (MERS). We will bring you the latest developments in this story as they come in. Stay tuned!