The attached Denial of Summary Judgment Order (HSBC v. Perez) from an Iowa foreclosure case is significant because the judge denied a Plaintiffs right to bring a foreclosure action because that Plaintiff did not acquire the subject mortgage under conditions that were required under its trust agreement. A copy of the entire Order can be found by visiting my website here.
Pooling And Servicing Agreement- The Rules Lenders Must Live By
The ruling is significant because the primary reason the judge prevented the plaintiff from taking the homeowners home back through foreclosure is the lender failed to follow the detailed rules that govern the trust under which it takes its authority. These rules are contained within the Pooling and Servicing Agreement which governed the trust into which the homeowner’s mortgage was sold. The deal is these Pooling and Servicing Agreements govern millions of mortgages across the country. The lenders, mortgage companies and servicers drafted these agreements and they are supposed to follow the terms of the agreements. Problem is, they routinely ignore the most basic and fundamental terms of their own agreements. Even when these significant facts are brought to the attention of the judges that preside over cases in which this occurs, the judges frequently ignore these relevant facts. The lenders, mortgage companies and servicers are in real trouble if judges begin (gasp) requiring them to follow the letter of the law and the very rules they set up!
For more information on this case, foreclosure or pooling and servicing agreements in general, contact Matt Weidner at