Massachusetts Supreme Court Blows Whistle on How the Banks Broke the Housing Market

[kpete]

Massachusetts Supreme Court Blows Whistle on How the Banks Broke the Housing Market
By: David Dayen Wednesday October 19, 2011 11:03 am



The highest court in Massachusetts ruled that a homeowner who bought a foreclosure that hadn’t been properly conducted by the foreclosing bank in 2006 didn’t have legal ownership of the property.

The decision by the Supreme Judicial Court casts a cloud over the legal ownership of any properties in Massachusetts where banks didn’t properly convey title when foreclosing. The problem has gained attention nationwide because of banks’ use of “robo-signing” and other dubious practices that may have broken chains of title on foreclosures.
http://online.wsj.com/article/SB10001424052970203658804576639553359831240.html


Think about that. Banks that failed to convey title during foreclosure have clouded the title of any property for the foreseeable future, meaning that whoever buys up the foreclosed property may not be the legal owner. And extrapolating that out, all the homes across the country where the banks failed to convey title properly through securitization have clouded the titles there. That means tens of millions of homes pretty much have no legal ownership chain.

This is the securitization fail we’ve all been dreading. The banks have broken the housing market utterly.

http://news.firedoglake.com/2011/10/19/massachusetts-supreme-court-blows-whistle-on-how-the-banks-broke-the-housing-market/

[SugarShack]

1. Clinton got rid of regulation Glass Steagel...so glad i bought when there were a few rules.Jail THEM

[saras]

2. It's not a fail to them. The end result is that ownership will move up the economic ladder.

If you can't, personally, afford to clean up the title to your house, and title insurance fails because there are far more failures than they can possibly pay out...

...the banks will end up owning the houses again.

Mission accomplished.

[nineteen50]

3. Dismiss all debt created by fraud.

[meow2u3]

4. DING, DING, DING!! We have a winner

I say we not only dismiss all debt as a result of fraud, directly or indirectly, but also we should immediately remove any negative credit information of all fraud victims.