An Alabama Judge has ruled that defects in the transfer of a borrower’s note to a securitized trust robs that trust of the standing to sue for foreclosure. Housing Wire reports that failure of a trust comprised of mortgage loans to comply with its own pooling and servicing agreement robs that trust of standing to foreclose. From the order:
“The court is surprised to the point of astonishment that the defendant trust (LaSalle Bank National Association) did not comply with the terms of its own pooling and servicing agreement and further did not comply with New York law in attempting to obtain assignment of plaintiff Horace’s note and mortgage,” the judge’s order, signed March 25 and filed with the court Wednesday, said. “Horace is a third-party beneficiary of the pooling and servicing agreement … without such … plaintiff Horace and other mortgagors similarly situated would never have been able to obtain financing.”
We have seen dozens of cases here in Ohio where the terms of the pooling and servicing agreements could not possibly have been met.
Yet another reason to consult an attorney immediately if a foreclosure complaint is filed against you.
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