In last week’s Foreclosures Stories article about Mark and Susie titled “The Supreme Court Gets It!” I compared our judicial system to a waking sleeping giant when it comes to securitized mortgage foreclosure cases. By that I meant that the courts are beginning to recognize the banks’ commonplace use of fraudulent paperwork in their rush to foreclose, and call them out on it. I lauded the Ohio Supreme Court for reversing the foreclosure judgment rendered by the trial court against Mark and Susie, a judgment which was affirmed by the court of appeals. By doing so, the Supreme Court found that the bank’s paperwork failed to show it was entitled to judgment. At the end of the story, I made a prediction that the bank, which had for years been fiercely bent in its desire to take Mark and Susie’s home away (because it is profitable to do so), would dramatically change its course and show a new willingness to work with Mark and Susie to allow them to save their home. It didn’t take long for that prediction to come true.
With lightning speed, following the Supreme Court’s decision, the bank reached out to us with a loan modification proposal that works for Mark and Susie and will be keeping them in their home for years to come. Is this because the bank didn’t want its paperwork to undergo the litmus test established by the court? I believe you can answer that one. In any event, Mark and Susie’s story is a dramatic example of how one success leads to another in the world of securitized mortgage defense, as the court system is beginning to hold the banks to the same standards of proof as the rest of us. Once again I say, “Thank You Ohio Supreme Court!”
Note from the author: If you have questions or comments regarding this or any Foreclosure Story article, please visit www.mcgookeylaw.com.
Next week: HAMP modification cuts homeowners mortgage payment by more than half.
Copyright 2013 Daniel L. McGookey