“A federal judge in Ohio has ruled against a longstanding foreclosure practice, potentially creating an obstacle for lenders trying to reclaim properties from troubled borrowers and raising questions about the legal standing of investors in mortgage securities pools.”
“Lawyers for troubled homeowners are expected to seize upon the district judge’s opinion as a way to impede foreclosures across the country or force investors to settle with homeowners. And it may encourage judges in other courts to demand more documentation of ownership from lenders trying to foreclose.”
“…the inability of Deutsche Bank, as trustee for the pools [mortgage securities pools], to produce proof of ownership at the time of the foreclosures will fuel borrowers’ concerns that they are being forced out of their homes by entities that may not even hold the underlying loans.”
[Update: In case you don’t follow the comments, “crockergal” provides a link to an explanation on “Who Really Owns a Foreclosed House” {L.A. Times Blog}]
–Foreclosures Hit a Snag for Lenders [NY-Times]