Mortgage Foreclosure & Refinance Resource

A federal judge in Ohio has ruled against a longstanding foreclosure practice, potentially creating an obstacle for lenders trying to reclaim properties from troubled borrowers, which can help you keep your house if you are being foreclosed in court. Lawyers for homeowners in foreclosure are expected to seize upon the district judge’s opinion as a way to impede foreclosures across the country or force investors to settle with homeowners.

The problem stems from pooling of home loans into securities that has been practiced for decades. The process of creating mortgage pool begins when a home loan is originated by a bank or mortgage lender. That loan is typically sold to a Wall Street firm that pools it with thousands of others. Once a pool is packaged, it is sold to investors in different slices, based on risk. A trustee bank oversees the pool’s operations, ensuring that payments made by borrowers go to the appropriate investors.

In the Ohio Case, the inability of Deutsche Bank, as trustee for the pools, to produce proof of ownership at the time of the foreclosures raised borrowers’ concerns that they are being forced out of their homes by entities that may not even hold the underlying loans.

For more information you can read the following articles:
NYTimes Article TimesDaily Article