SUMMARY JUDGMENT DEFEATED IN FLORIDA SECURITIZATION CASE

November 30, 2011

A Palm Beach County, Florida Circuit Court Judge denied Citimortgage, Inc. as trustee of an American Home Mortgage securitized mortgage loan trust’s motion for summary judgment yesterday. The ruling was the only one of its kind on the entire foreclosure docket yesterday afternoon; all other bank summary judgment motions were granted. The homeowners are represented by Jeff Barnes, Esq.

The original lender was American Brokers’ Conduit, a subsidiary of the bankrupt American Home Mortgage companies, which are still in Bankruptcy. There was no evidence of any permission from the Bankruptcy Court to allow the mortgage to be divested from the Bankruptcy estate; no evidence that MERS could assign the loan for the bankrupt lender 3 years after the bankruptcy was filed; no evidence that MERS could assign, in 2010, the loan to a trust which closed in 2006; and no evidence of any compliance with the PSA by the trust.

Mr. Barnes also prevailed today on a separate case where Wells Fargo moved to dismiss the homeowner’s declaratory action. The court denied the Motion as related to the Amended Complaint. Wells Fargo previously filed papers indicating that (a) the loan was owned by an unidentified “investor”; (b) that the loan was assigned to Fannie Mae; and (c) that MERS remains the mortgagee on the loan. Which of these alternatives posited by Wells Fargo is true (if any) remains to be seen.

Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com

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