Denninger: Then shove it up their ass through the Bankruptcy courts. FREE HOUSE?Submitted by bobbyw24 on Sat, 10/23/2010 - 08:24
Free House? Maybe.
Let's look at a few things here....
First, this decision:
The Motion was filed by MERS “as nominee [for] HSBC Bank USA, National Association, as Indenture Trustee of the Fieldstone Mortgage Investment Trust Series 2006-3.” Even assuming that MERS as a “nominee” had sufficient rights and ability as an agent to advance its principal’s stay relief request, there remains an insuperable problem. The Motion provides no explanation, much less documentation or other evidence, to show that the Fieldstone Mortgage Investment Trust Series 2006-3 (as an entity) or HSBC Bank USA (as that entity’s “indenture trustee”) has any interest in the subject Note or the subject Deed of Trust.13
Here's the deal: Unlike "Rocket Docket" courtrooms and non-Judicial foreclosures, in bankruptcy the procedures are pretty much black-letter and actually followed.
If someone asserts in a Bankruptcy that you owe them something, they have to prove it. This is in conformance with the UCC generally, along with what should be true in foreclosure hearings but often is ignored in the interest of "expedience."
But in the case of a Bankruptcy, we're talking about a table that is flipped. That is, the outcome of a Chapter 7 bankruptcy is the discharge of the debt - those coming in are looking for exceptions.
This is the inverse of the situation where a bank is seeking to foreclose, where the outcome is they take the house back and throw you out - you are, in that case, trying to get the exception.
This is, I suspect, the key.