We are seeing a recent ramping up foreclosures by investment banks and servicers on loans originated in the early-to-mid 2000s after a somewhat lengthy period of inactivity. Many of these are old Countrywide and WaMu loans which, allegedly, have been transferred to securitization trusts involving Deutsche Bank, JP Morgan Chase, US Bank, HSBC Bank, and others which were involved heavily in the securitization of mortgage loans beginning in 2000.

Litigation on the issues never fully resolved many of the issues surrounding standing to foreclose, the viability of assignments, questionable endorsements, and setoff issues. Thus, these issues, depending on the jurisdiction, are still undecided and thus ripe for assertion.

We are also seeing an increase in “zombie” loan claims as well as claims made by different entities as to who allegedly succeeded to the interest in a Note and/or mortgage instrument, and suspect that these types of cases will continue to increase given the present state of the economy including what appears to be a “tightening up” by the banks in approving mortgage applications. With less loans being originated, the “banks” are apparently searching their books to seek to foreclose on old loans which they had not acted upon for years in order to boost their balance sheets and perception of assets..

Jeff Barnes, Esq.