If Lenders Say ‘The Dog Ate Your Mortgage’

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One surprising smackdown occurred on Oct. 9 in federal bankruptcy court in the Southern District of New York. Ruling that a lender, PHH Mortgage, hadn’t proved its claim to a delinquent borrower’s home in White Plains, Judge Robert D. Drain wiped out a $461,263 mortgage debt on the property. That’s right: the mortgage debt disappeared, via a court order.

So the ruling may put a new dynamic in play in the foreclosure mess: If the lender can’t come forward with proof of ownership, and judges don’t look kindly on that, then borrowers may have a stronger hand to play in court and, apparently, may even be able to stay in their homes mortgage-free.

Related Posts:

• Lender beware. Don’t lend money that you don’t expect to get back.
• We need some changes in regulations for home mortgages.
• If the owner of the property can’t pay the mortgage, then how can thy pay the monthly lease?
• Loan Modification Failure Rate - 24% in 2 months.
• MORTGAGES MELTING LIKE ICE CREAM UNDER A HOT SUN

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