In the midst of a foreclosure crisis that appears hopeless for most Americans, a Connecticut homeowner decided to take his foreclosure to the court system. With the help of a securitization audit he successfully vacated the judgment against his home.
Hampton, CT -- (SBWIRE) -- 08/16/2012 -- In an all too common situation, a Hampton, CT homeowner found himself as just another statistic in the foreclosure crisis that’s sweeping the nation. The Bank Of New York Mellon, as Successor Trustee Under NovaStar Mortgage Funding Trust, filed foreclosure proceedings against his property on April 15, 2011.
The Hampton homeowner, instead of letting the bank just take his property, hired a foreclosure attorney and obtained the services of a nationwide securitization audit company called Paladin Securitization Auditors. Paladin Securitization Auditors provided a document known as a securitization audit to the homeowner’s foreclosure attorney. The document, submitted as legal evidence in his court case, outlines the chain of custody of the mortgage note and also investigates other critical elements of the mortgage and foreclosure process, each of which help to determine the legality of the attempted foreclosure.
Major discoveries from the securitization audit include:
“…No Evidence of any publically recorded Assignment of the subject Mortgage into this alleged securitization, this action would be Invalid as they have ‘No Standing’”
“It should be noted that the primary document for review in an audit is the Promissory Note. We have examined a copy of a Note for this transaction; it did not contain any Sale/Assignment Endorsement to any subsequent party. As a result, we were not able to determine if the live ‘wet-ink’ Original Note has been properly executed by the Original Lender (NovaStar Mortgage, Inc.) and into the alleged Securitization ‘The Bank of New York Mellon, as Successor Trustee under NovaStar Mortgage Funding Trust, Series 2005-2’.
“Without knowledge of whether the Note and Deed have or have not become bifurcated, we cannot confirm that the foreclosure in the case at hand, would or would not be legal under applicable law.’
“the Origination of this transaction is found to be flawed due to HUD-1 showing sale price $375,000.00 ‘plus’ included Personal Property for $39,357.93, earnest money deposit shown as $39,654.45, a new loan in the Amount $372,922.00, with Cash from Borrower (his real down payment) of only $5,158.04. This deceptive issue should be highlighted in any Court action asserted by this Borrower against the Plaintiff in the ongoing Complaint case.”
In layman’s terms, the current servicer attempting to foreclose on the property could not effectively show that they own the mortgage note. In addition, the securitization audit illustrated a huge amount of ambiguity in the foreclosure process that created reasonable doubt to whether NovaStar had any legal claim to foreclosure on this property.
After reviewing the evidence provided by the foreclosure defense attorney, including the findings of the securitization audit, the judge for the case ruled to vacate judgment. This is a huge victory for the homeowner and for the nationwide fight against foreclosure. For now, and until NovaStar Mortgage can prove that they own the mortgage note, the homeowner can rest easy and continue to live in his home, without the burden of foreclosure or mortgage payments hanging over his head.
About Paladin Securitization Auditors
Paladin Securitization Auditors offers wholesale, trial-ready securitization audits to attorneys. They also offer unchallenged expert witness testimony.