According to local attorneys and court records, banks in recent weeks have dropped hundreds of Southwest Florida foreclosure lawsuits in Lee, Collier and Charlotte counties. Opinions vary sharply on whether this means banks are taking a breather before re-filing with stronger evidence, or just giving up for good on hopelessly flawed cases.
The exact amount of foreclosures being dismissed have not been calculated, but eight voluntary dismissals were filed last Tuesday alone by seven different banks including Bank of America, one of the largest filers of foreclosures in the area. Most of the mortgages in dispute were sold to Wall Street and sold in bundles to investors as mortgage-backed securities. However, so many mistakes were made in the process it’s unlikely the banks can win those cases.
This recent wave of voluntary dismissals may be a result of a Massachusetts Supreme Court ruling on January 7th upholding a judge’s decision two foreclosures were invalid because the banks didn’t prove they owned the mortgages, which were said to be improperly transferred into two mortgage-backed trusts.
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Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.