The highest state court in Massachusetts upheld a decision last month invalidating foreclosure sales conducted by two banks to which mortgages had been assigned. The banks claimed that “securitization documents” they submitted established valid assignments that made them the holders of the two mortgages before a notice of sale and foreclosure sale. The court disagreed with the banks and agreed with the trial judge that the Plaintiffs in these, which were not the original mortgagees, failed to make the required showing that they were the holders of the mortgages at the time of foreclosure.
As a result, the banks did not demonstrate that the foreclosure sales were valid to convey title to the subject properties. The court’s order said that the foreclosing entity must hold the mortgage at the time of the notice and sale in order accurately to identify itself as the present holder in the notice and in order to have the authority to foreclose under the power of sale or the foreclosing entity must be one of the parties authorized to foreclose under state law.
Source: Lawyers USA Online
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