On Friday, the Massachusetts Supreme Court ruled that two foreclosures down by 2 of the nations largest banks were actually invalid. Since then it has been a firestorm through the industry with people wondering what the ruling will mean for other foreclosure sales. And what that will mean for the leverage potential of a short sale.
Basically, the banks foreclosed on the homes, and then bought them at foreclosure prices. But they forgot one thing: to prove they even owned the mortgages at the time of the foreclosure. Whoops!
The banks tried using all sorts of fancy jargon to prove they didn’t, wouldn’t, couldn’t, shouldn’t have, almost, whatever. In the end, the judge cut through the red tape and figured out the bottom line. This might be unique to that state because of some specific laws they have there, but the applicability will definitely be tested in courts across the country in the coming months.
So where will that leave homeowners on the verge of losing their homes? Will this offer them a much needed reprieve? Will it delay the inevitable? Will it just be another hoop to jump through?
What do you think?