Freddie Foreclosure Holds No Water Without Note, Court Says

Law360, New York (October 31, 2012, 6:53 PM EDT) -- The Ohio Supreme Court on Wednesday ruled that parties initiating foreclosure actions cannot do so before obtaining an assignment of the promissory note and mortgage securing the borrower's loan, dismissing a foreclosure suit by Freddie Mac.

The high court unanimously overturned the judgment of an Ohio appeals court, which in 2010 had affirmed a decree of foreclosure for Freddie Mac against two delinquent homeowners. The high court found Freddie Mac had no standing to bring the foreclosure in April 2009 because it had not yet been assigned...
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