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EDITOR’S COMMENT: Up until now, there has been an impenetrable trap-door for homeowners who were the victim of a fraudulent foreclosure — especially in States like Arizona and California where  sales of property are held without judicial review. The pretender lenders are simply forming companies that substitute trustees and other parties — essentially appointing themselves as judge, jury and executioner.

Then when it’s all over, and the bogus  auction results in the issuance of a deed in foreclosure, the homeowner is faced with an eviction lawsuit in which the rules say he can’t challenge title — even if he has evidence of forgery and fabrication of documents. Now, The highest court of Massachusetts, has said that is a loophole it is closing. The Judge MUST hear the challenge if the allegation is that the party seeking eviction is alleged to have acquired title illegally.

Ruling by state’s highest court could provide boost for those fighting eviction – The Boston Globe

The state’s highest court has ruled that people fighting eviction from homes they lost to foreclosure can challenge the validity of a property seizure in housing court after the fact, a decision advocates for homeowners’ rights are calling a major victory.

The Massachusetts Supreme Judicial Court’s unanimous ruling, released today, involved KC Bailey, a Mattapan man whose home was taken back by the lender through foreclosure. In 2009, Bailey contested his eviction during a housing court proceeding, saying the foreclosure process itself was flawed.

In court, Bailey claimed he only learned of the 2007 foreclosure when he found an eviction notice taped to a fence surrounding his property. He refused to leave the house on the grounds he was not given proper notice of the sale.

Bank of New York, which wanted to evict Bailey, argued that the housing court didn’t have the authority to consider a challenge to a foreclosure that had already been finalized, and the judge agreed. Bailey appealed and the Supreme Judicial Court decided to take the case. As a result of its ruling, the case now goes back to housing court.

18 Responses

  1. The Western MA Housing court ignored this ruling on Friday the 18 and is allowing eviction to happen Tuesday the 22nd at 9:00 am. Judge Dina Fein is converting proven forged documents into lawful documents. This ruling is meaningless to the lower court STILL! To see this go down on video and read the motions entered in this week, follow along on facebook. bill.bry

  2. @ johngault

    I forgot to add.
    The same NYSC Judge Alice Schlesinger , who took a bribe from the title attorneys (Fidelity & Coronet) ,stated when I sought motions to mark vacated the two void judgments,
    “why would the Federal Court have sent this case back?”

    Astoria Federal S & L new attorneys looking at the dates stated It’s indemnify, indemnify, Indemnify – we are stepping aside and the title companies are stepping in.

    Now that alot of us are aware how Fidelity deals in fraudulent and forged documents, this is how they operate – what they can’t win on the law, they win by paying the judge off.

  3. @ johngault

    what you said is similar to the words the Federal Clerk said to me
    when he saw the situation “you got shafted”

    I guess I got half way Karma. After the case was remanded the corrupt attorneys MJRF instead of having the judgments signed when the case was remanded and the state court had jurisdiction, used the void ab initio judgments signed in state court without jurisdiction and used that to auction off my two properties, without the bank ever owning them.

    So all they ever passed were forgeries and the two condos titles are still mine.

    The difficult part is getting possession of my two condos since the title attorneys from Fidelity National Title and Coronet think Forged deeds are good,

  4. AS to this case and in favor of the people of MA, I think it’s noteworthy that the MA SC took this case from the appeals court on its own.

  5. @Marilyn – sounds like you got the shaft, although I know nothing about that topic.

  6. @ johngault

    In 1997 when the corrupt attorney MJRF filed motion to lift the automatic stay in Bankruptcy Court, the Hon Cornelius Blackshear when hearing of the fraud going on at Astoria Federal S & L told me to file a Federal Petition.

    I filed a Petition in NY Southern District of Federal Court upon Federal Question. The Hon. Louis L Stanton read, accepted it for Filing, had it docketed and the Hon LS Stanton issued his first orders including that I write a demand letter of settlement upon the bank.

    After almost three months of this case proceeding in Federal Court
    with pressure from the bank, the Hon. LS Stanton made a quick 180 turn and remanded my case to State Court claiming that Federal Court
    does not have jurisdiction of who can create money pursuant to
    Art 1Para 10 Cl 1 of the US Constitution.

  7. If you’re in bk, and your bankster got relief from stay, you may be able to
    meet him yet in state court. Here is a decision you might take to an attorney which states that relief from stay is not preclusive of rights:

    It’s my lay opinon these are the operative words in this bk (ED VA) decision:

    “The court does stress, however, that relief from the automatic stay simply removes a temporary barrier to the enforcement of creditor rights and is not a final determination of the creditor’s right to enforce its claimed security interest. See Grella v. Salem Five Cent Savings Bank, 42F.3d 26 (1st Cir. 1994) (holding that order granting relief from the automatic stay does not have preclusive effect). The debtor remains free to bring an action in state court challenging IndyMac’s right to foreclose and may bring in state or federal court any claim to enforce rescission under the Truth in Lending Act or for relief under other statutes.”

  8. Here is a link to the decision:

  9. massachusetts seems to be getting it in all branches of government, however our governor has remained notably silent on the issue. i wonder why mr patrick? the banks have you in their hip pocket?

  10. this is a great ruling for the people of Massachusetts

    When I told the New York Housing Judge how this eviction against me is illegal

    re:Fang Li v. Marilyn Lane

    starting with Fidelity NY FSB hiding four of my mortgage checks and that Fang Li a straw buyer and her attorneys Schwall and Becker are using a Void Judgment ab initio( signed in NY State Court while the case was under Federl Jurisdiction) trying to illegally evict me.
    the Housing Court Judge replied,
    “what do you want from me?, I’m low man on the totem pole.” and proceeded to have me ousted by the Marshalls.

  11. You can read the briefs, including an amicus here:

  12. I think the case is Bank of New York, trustee v. KC Bailey, No. 10801 decided 8/4/11. I’ll link to pdf if I can.

  13. Write to your AG. I’ve posted this on several pages here because I absolutely believe that we can obtain redress for our country as a whole.

    Dear Attorney General DeWine,

    Thank you for your August 1st e-mail answer. I am afraid, however, that it completely fails to clarify your intentions with respect to the horrendous bank and mortgage fraud committed on this country and your plan of action toward redress, on behalf of the Ohioan people. It is, in fact, so vague that a believer in our American Constitution and sense of justice would feel as justifiably insulted by it as I was. Mr. DeWine: I chose America as my country of adoption and Ohio and my adoptive state. I sincerely hope that neither was a mistake. To a large extent, you have the ability to help me decide how and where I wish my taxes to be spent. You also have the ability to make Ohioans decide how long you will remain in office. Please, do not make us regret our choice.

    Recently, we have read or heard about your efforts toward curtailing Medicaid and Medicare fraud and it is my understanding that your office was able to prosecute a number of individuals and recover over 103 million dollars since taking office. While I congratulate you for it, I am also deeply concerned that your efforts are completely misdirected and amount to little more than a drop in a bucket in today’s economic climate. Mr. DeWine, and with all due respect, Medicaid and Medicare frauds have existed since the implementation of both programs, decades ago. While I do not condone fraud in any shape or form, neither has, to my knowledge, ever brought our country down to its knees as a whole nor caused people to lose jobs, houses, hope and, all too often in the past years, their lives. Neither has ever caused the level of hunger and homelessness recorded in this country since 2006 and… neither has ever resulted in the biggest economic crisis since 1929. Neither has ever caused the dramatic increase in violent crimes we have seen in the past years in Columbus, Cleveland, Cincinnati and other large cities. Neither has ever left people as exposed and destitute.

    As everyone of us, you have read that Attorneys Generals Schneiderman (NY), Harris (CA), Coakley (MA) and a few others have taken a strong stand against the banks, who literally destroyed the entire fabric of our country and of our financial systems and are at the origin of the enormous debt our children and grand children will have to carry and repay for decades to come. When you took office a year ago, we, Ohioans seriously victimized by mortgage banks and servicers abuses (6th state most affected by mortgage fraud and foreclosures), hoped and dreamed that you would follow Richard Cordray’s footsteps and tackle, heads on, the problem with the same crusading spirit as your predecessor and current counterparts. Yet, you have remained remarkably silent on the issue… I cannot find any media article in which you even broached it and I find it extremely worrisome. You e-mail answer to my inquiry remained extremely vague and non-committal as to your investigation and prosecution efforts.

    It has become patently obvious to me, in view of your year-long track record and the lack of any mention on your part of the foreclosure and mortgage crisis, that you do not consider it as the primary –and possibly the exclusive- origin of America’s current financial crisis. Under the circumstances, you make it very difficult for Ohioans not to question your motives and your sincerity.
    Mr. DeWine, America’s is owed over 7 trillion by banks and mortgage servicers in the form of federal, state and county revenues. 7 trillion! I have yet to find statistics and hard numbers concerning the damages caused to Ohio but I would be willing to venture that they exceed 103 millions by a factor of 10, if not even 100.

    As your constituent, I ask that you publicly join the ranks of the above named Attorney General and make the commitment to all Ohioans to investigate and prosecute bank fraud and illegal foreclosures in our state with as much dedication and vigor as Mr. Cordray displayed. The urgency of the situation demands that you cross party lines, ignore special interests of the large banks settled in our state and fight, purely in the name of justice for all. Now is the time for drastic and unyielding action.
    In your capacity, please take it now. Thank you.



    —–Original Message—–
    From: Constituent Services
    Sent: Mon, Aug 1, 2011 10:55 am
    Subject: General Help

    August 1, 2011

    Dear Christine,
    Thank you for contacting me regarding foreclosure fraud.
    I am committed to protecting Ohio families. I am very concerned about foreclosure fraud and its impact on Ohioans. I am actively looking into appropriate remedies.
    Across the board, the office is working on all fronts to fight consumer fraud. Specifically, I am increasing the office’s focus on criminal prosecutions of consumer fraud.
    Again, thank you for contacting me. If my office can ever be of assistance to you in the future, feel free to contact us.

    Very respectfully yours,

    Ohio Attorney General

    —–Original Message—–
    It is my understanding that AGs of all 50 states are currently negotiating a settlement with the banks responsible for the economic crisis through breach of law, fraud, irresponsible lending, misrepresentations, etc. all punishable by law.
    It is also my understanding that the 20 billion mentioned for the past weeks would be subject to immunity and that legal pursuits would not be undertaken against the culpits.
    This is absolutely unacceptable. As a homeowner who was conned into a refinancing by unscrupulous lenders and who suffered for the past three years with fraudulent fees, threats of foreclosure, violation after violation of legal statutes by the servicer, I can attest that 3 years of my life were stolen by the bank.
    Mr. DeVine, I understand that your political career is important to you. Please understand that, without people to elect you, your political career will not survive. You were elcted to defend Ohioans from the abused they were subjected to and to redress the many wrongs committed. I intend to see public servants I elect fulfill their mandate and comply with the description of the position.
    Please do not, under any circumstance, allow a 20 billion settlement (largely insufficient to redress all the wrons mentionned above) be conditional to immunity of banks officers and directors who spent the greater part of the past 15 years enriching themselves at the expense of our middle-class and literally destroyed our contry.
    Thank you in advance.

  14. This is a bit off topic folks, but important.

    Payday lending preys on our communities, stripping billions of dollars of wealth every year – from families who can afford it least. Now the big
    banks, like Wells Fargo, US Bank, 5th/3rd and other banks are getting into the act, offering their own predatory payday loans.

    The OCC is taking public comment on this plan until August 8th – tell the OCC NO to bank payday lending and NO to putting bank greed over people!

    My comment to the OCC.

    Dear Acting Comptroller Walsh:

    Payday lending, because of the economic downturn is being used by more and more middle class people who are just barely hanging onto their situation.
    We have many loan sharks in prison, who charged lower rates.
    Do something for the American people!
    The Banks can and will continue this service, at a far lower rate if you require that they do so.

    John Earl Anderson

  15. What is “housing court?”

    Do we have housing court in California?

    We had a notice taped to our gate and of course we were evicted by Wells Fargo and gang.

  16. and floridah?????????????????????? doesnt any onw question what is happening here? we have no jobs, we can not pay our bills. we have reverted to mcdonalds, and wendy’s dollar menu’s to eat because buying foodin publix, winn dixie and walmart is to expensive. when we have heart attacks and need surgery who is going to pay for it??? if we do not have jobs to pay medical insurance. its a continum. and on top of it all we cant sell our houses and move to another state or area for jobs because we all put our 20% down on homes and we cant abandon them. our hard earned lifes work is in these homes. so life is in limbo waiting. waiting for a florida judge to hear the fraud to rule. to rule against whom. all we cn do is pray everyday the truth gets out. and by the time my court day arrives my judge has a clue and listens to my arguments about the fraud that has been perped against us starting with the origination,. does china know all this??? that our the OCC regulated banks did not loan this money that the tilte companies received funding from outside investors for our mortgages that if we did not sign and close these loans the money goes back to the investor. does china know that all thes so called “banks” put their name on all our mortgages and notes as the lender and they did not fund the loans. that how can theyhave ownership and foreclsoure if they dont even own the house. this whole mess was a team work

    title companies, appraisers. why did they not stop the scam. were they threatened? yes they were. propably when the title companyquestioned the wells fargo why is your name on this note and morgage but received the money from a new york state state trust firm? they were propably told same lies we all were told during our modification proccesses.

    i hope china catches on and see these fools did htis brought us down and there seems no end in site.

  17. It would be helpful if Neil were to post the actual Ruling, or a link to it. the Boston Globe article provides no link.

  18. […] Livinglies’s Weblog Filed Under: Foreclosure Law News, Foreclosure News Tagged With: crisis, foreclosure, […]

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