Mortgage Documentation Issues Remain Unclear in Foreclosure / Bankruptcy Cases
Back in the summer of 2007, we reported on the upside to sliced, diced and flipped consumer mortgages: the paper trail was hazy at best and in some cases non-existent, and attorneys like April Charney were seeing some success in stopping foreclosures based on lack of evidence. Later that year, Professor Katherine Porter released a study indicating that the flaws in mortgage claims were even more significant and more prevalent than we'd known. An overwhelming number of mortgage claimants didn't have the required documentation, didn't bother to file it, or had the numbers wrong.
The possibilities seemed endless for bankruptcy attorneys and other consumer attorneys defending against mortgage claims. But nearly three years later, the dust still hasn't settled. In a recent post on the Credit Slips blog, Professor Porter shares her thoughts on the current state of mortgage proceedings with bad or missing paper--and there are many open questions. Also interesting are the comments from attorneys and other professionals around the country, demonstrating that the treatment of these poorly documented mortgages varies greatly from jurisdiction to jurisdiction.
