Some Foreclosures Hit a Federal Snag

The N.Y.Times published this article about a federal court ruling which limits the ability of some "investors" to foreclose on properties. If a mortgage is in foreclosure, and that mortgage has been pooled with other mortgages and sold to a bank, the bank likely cannot prove ownership at the time of foreclosure, which is a requirement of enforcing a mortgage. Usually this is a non-issue to the homeowner since the homeowner doesn't have the resources to defend, and pick apart, the lender's case. But in Ohio, the court took a stand against this established practice, and from the comments I read in the article, was quite ticked at the arrogance of the banks.