Confusion Arises Over Who Owns the Mortgage
The flood of foreclosures has created more than one kind of confusion, the latest coming to light is over who owns the mortgage and has the right to foreclose.
The situation was reported both by the Wall Street Journal Law Blog (“Foreclosure Mess: Two Different Plaintiffs Claim to Own Same Mortgage”) and ABAJournal.com, citing the WSJ post (“Practice Tip for Foreclosure Defendants: Make Sure Lender Owns Mortgage”).
The confusion comes about, of course, because mortgages have been packaged, “securitized,” and sold, possibly several times over. Identification of the legal entity with ownership rights may become unclear. Or, simple bureaucratic confusion among the entities serving as trustees and servicers may lead to errors.
As suggested by ABAJournal.com, the situation is of more than just humorous interest. It may suggest a defense.
