New Legal troubles beset the troubled US Foreclosures Housing Market

We stress here time after time here at FHARates.Info that our objectives are to deliver the latest news covering mortgage news and mortgage rates that means we will post good and bad news

US Foreclosures

However as the national recession meanders on irrespective of the government saying that the economy is turning round good news in the housing market is very few and far between

So the latest negative news we have to report is quoted courtesy of BBC – quote – Two of the US’s biggest mortgage lenders have had mortgage foreclosures cancelled in a case that could affect other banks.

The Supreme Court in Massachusetts ruled against US Bancorp and Wells Fargo in a widely watched case.

Backing a lower court ruling made in 2009, it said two foreclosure sales were invalid because the banks did not prove that they owned them at the time.

Bank shares fell sharply after the ruling dragging the wider market down.

The decision is among the earliest to address the validity of foreclosures done without proper documentation – so-called robo-loans because they were carried out by people who were unqualified and who often did not check a single line in the paperwork.

After the robo-loan scandal was exposed last year some lenders, including Bank of America, JP Morgan Chase and Ally Financial temporarily stopped seizing homes.

We are not here to judge these two banks US Bancorp and Wells Fargo but we do know that while ever there are ongoing legal issues going on against the bankers who are the lenders. Then that is a hindrance which impacts on the all all aspects of the housing market

‘Our desire it to see an honest transparent accountable trouble free housing market that does what it is our opinion supposed to offer, which is an open market which enables home buyers to buy property in a trouble free process. As the market stands at present it appears that anyone who buys a house may be buying into a host of legal problems. All these legal encumbrances and unknowns need resolving as quickly as possible the US public have the right to trade in a market devoid of a minefield legal problems!’

The full BBC article can be accessed below

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