The court's decision confirms that only the owner of the debt has a right to foreclose. Holder status is not enough. I would expect lenders to be slow to change their procedures to account for this decision, which could very likely mean more dismissed foreclosures in 2012.


Even though mere holder status is still beneficial for lenders, establishing that they are holders of the note will continue to be difficult for lenders. I recently had a case dismissed for a client because the party that started the foreclosure suit failed to prove that it was the holder--had possession of the note--on the date the action started.

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