MASSACHUSETTS COURT VOIDS FORECLOSURES, CITING NOTE TRANSFER ERRORS

http://www.massachusettslandusemonitor.com/files/Ibanez%20decision%20%28A0837218%29.PDF

The Massachusetts Supreme Court ruled Friday that U.S. Bank and Wells Fargo did not have the legal right to foreclose on two homes in the state, invalidating the seizure of the properties and raising further questions about foreclosure documentation – this time related to the proper transfer of ownership on mortgages packaged as securities.

At the core of the issue is that the lenders both failed to ensure the assignment of the mortgage notes were executed and recorded in the registry of deeds before the dates of the foreclosure sales.

Bankruptcy Petitions on a Rise in Massachusetts

According to the Administrative Office of the U.S. Courts (AOUSC) report, the total number of bankruptcies filed during the first six months of 2010 in Massachusetts increased by approximately 19% over the same six-month period in 2009, driven by sharp increases in consumers seeking relief from debt.


The American Bankruptcy Institute noted that the first half of 2010 posted the highest number of filings recorded since the institution of new regulations in 2005.