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Thu Jan 3, 2013, 12:43 AM

 

Michigan Supreme Court Rules $3.75 Billion Of JPM Chase Held Mortgages Are Voidable

On the Friday before Christmas, while the media was focused on the funerals of the victims of the Sandy Hook massacre and pre-Christmas retail sales figures, the Michigan Supreme Court quietly handed down a significant ruling that will affect nearly $3.75 billion worth of mortgages former Washington Mutual mortgages that JPMorgan Chase acquired from the FDIC after Washington Mutual went into FDIC receivership in 2008.

The Michigan Supreme Court upheld a Michigan Court of Appeals ruling from January that calls for a strict interpretation of a Michigan law that states that if a foreclosing party is not the originating note holder they must be able to show a record chain of the mortgage.

The Michigan Supreme Court in their 4-3 ruling states that the mortgages are currently unenforceable because JPMorgan Chase can not claim operation of law. The court ruled JPMorgan Chase did not acquire Washington Mutual as a corporate entity. Instead they acquired assets of the company through a third party. Therefore a chain of ownership must be recorded with the Register of Deeds where the property is located.

This ruling could affect as many as many as 40,000 Washington Mutual mortgages in Michigan that JPMorgan Chase acquired from the FDIC. It is unknown if JPMorgan Chase will seek damages from the law firms aka foreclosure mills that were either hired directly or indirectly by JPMorgan Chase to handle recording these documents and execute the foreclosures.

http://www.mfi-miami.com/2012/12/michigan-supreme-court-rules-3-75-billion-of-jpm-chase-held-mortgages-are-voidable/

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Reply Michigan Supreme Court Rules $3.75 Billion Of JPM Chase Held Mortgages Are Voidable (Original post)
HiPointDem Jan 2013 OP
PoliticAverse Jan 2013 #1
elleng Jan 2013 #3
SunSeeker Jan 2013 #2
Mojorabbit Jan 2013 #4
IndyJones Jan 2013 #9
madfloridian Jan 2013 #5
BlueStreak Jan 2013 #6
ReRe Jan 2013 #7
tridim Jan 2013 #12
ReRe Jan 2013 #14
davidpdx Jan 2013 #8
jmowreader Jan 2013 #10
tridim Jan 2013 #11
HiPointDem Jan 2013 #13

Response to HiPointDem (Original post)

Thu Jan 3, 2013, 12:48 AM

1. 'oops'. n/t

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Response to PoliticAverse (Reply #1)

Thu Jan 3, 2013, 12:57 AM

3. I hope the perpetrators are saying more than 'oops!'

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Response to HiPointDem (Original post)

Thu Jan 3, 2013, 12:56 AM

2. Yikes. I'd hate to be the law firms' malpractice carrier. Hee hee.

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Response to HiPointDem (Original post)

Thu Jan 3, 2013, 12:57 AM

4. Hahaha! nt

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Response to Mojorabbit (Reply #4)

Thu Jan 3, 2013, 03:59 AM

9. My thoughts exactly!

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Response to HiPointDem (Original post)

Thu Jan 3, 2013, 12:58 AM

5. Wow, what a mess.

There's so much fraud going on in Florida. I don't understand it all, but it is very screwed up. Many people hurt without good cause.

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Response to madfloridian (Reply #5)

Thu Jan 3, 2013, 01:05 AM

6. These guys were flipping paper every which way

They get no sympathy from me.

The whole thing was a game a "musical chairs" to them. Keep flipping the paper and hole you aren't the last one holding on to the toxic asset.

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Response to HiPointDem (Original post)

Thu Jan 3, 2013, 02:32 AM

7. Wonder how one would find out...

...if they were one of these that don't have a record chain? Just ask JPMorgan Chase?

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Response to ReRe (Reply #7)

Thu Jan 3, 2013, 09:59 AM

12. I asked their lawyers, they couldn't produce the records.

Still foreclosed.

If you're rich you can sue them. If not, your SOL.

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Response to tridim (Reply #12)

Thu Jan 3, 2013, 03:14 PM

14. No justice, no peace...

...So sorry this happened to you. Write your Congressman/Senators? They might be able to tell you where to start/what direction to go to get some justice.

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Response to HiPointDem (Original post)

Thu Jan 3, 2013, 03:43 AM

8. Jeez...what a fucked up mess.

If I remember correctly JP Morgan was forced to take what was left of Washington Mutual and they weren't happy having to do so. It seems they got sloppy with how the mortgages were handled after that.

I happened to be taking an international business law class this term and had my law dictionary handy:

Operation of the law-refers to the determination of rights and obligations through the automatic effects of the law and now by any private agreement or direct act of the party affected.

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Response to HiPointDem (Original post)

Thu Jan 3, 2013, 04:08 AM

10. Part of the toxic legacy of Mitt Romney

Mitt W. Romney's Bane Capital was using CDOs with subprime mortgages deeply underlying to fund their takeovers. And Goldman Sachs was not the only party to build synthetic CDOs.(A synthetic CDO is a bond based on credit default swaps taken out against mortgages you don't own. A CDS pays off ONLY if the mortgage fails, so you bet against really crappy mortgages.)

On a related note, remember the Goldman Sachs scandal? They are just so lucky I wasn't the judge. We all remember this one: all the people who bet against Goldman lost their investments. I thought this was terrible too until I read the prospectus. GS was very clear about what they were offering. A synthetic CDO is a bet against the mortgage market. In them there are two counterparties: one side makes money if the mortgages succeed, the other if they fail. GS was betting on failure. Simple example: the Seahawks are playing a team of my choosing. You and I are betting on the team, you for them to win, I for them to lose. If I only make money if Seattle wins, they're playing the Lions.

The real scandal here is every abuse committed during the Bush years was totally legal.

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Response to HiPointDem (Original post)

Thu Jan 3, 2013, 09:57 AM

11. That's exactly what happened to me...

I demanded to see the chain of ownership via their lawyer. They couldn't produce it, but foreclosed anyway.

JPM Chase "acquired" my mortgage from WaMU and never paid a dime for it and hid that fact by not filing the proper documents. Then they sold it to Fannie for a hefty profit. How in the hell is that not illegal?

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Response to tridim (Reply #11)

Thu Jan 3, 2013, 01:46 PM

13. +1

 

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