Rulings May Hinder Trustees' Foreclosure Actions

Law360, New York (December 6, 2007, 12:00 AM EST) -- Two recent decisions by federal district court judges in the Northern District of Ohio have dismissed foreclosure actions filed by mortgage securitization trustees because the trustees failed to demonstrate they were the owners and holders of the notes and mortgages upon which the suits were filed.

Because the trustees did not satisfy this requirement, the courts found they lacked standing to pursue the foreclosure actions and dismissed the cases without prejudice.

The decisions are garnering particular attention by borrower defense counsel, who are anxious to use...
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