Thursday, November 15, 2007
A federal district court judge in Ohio, one of the states with the highest number of foreclosures, dismissed 14 foreclosure cases brought by a Deutsche Bank affiliate that is the trustee for the securitization pool. The judge held that the trustee failed to prove that it owned the notes and mortgages on the properties it was trying to seize. The lawyers for the bank were not able to file copies of the loan assignments, only papers showing an intent to convey the rights in the mortgages. The judge rejected the bank's argument that this was customary lending practice. An recent academic study found that 40% of creditors foreclosing on property did not show proof of ownership. NYTimes, Foreclosures Hit a Snag for Lenders.