Very interesting state of affairs in Ohio. The subprime fiasco now has another angle to it.
The banking practice of subdividing mortgages into derivatives may have caused records of the ownership of the credit (mortgage notes) to be disconnected from the credit. The bank claiming rights to repossess a defaulter’s home in a foreclosure can be challenged to show that they have a legal right to the property. If they cannot connect their ownership right to the property then ‘case dismissed’.
It does seem odd that a defaulter would be able to claim that technically they do not owe anything. But it would be an appropriate lesson for bankers who play complex technical legal games themselves in pursuit of profit. Bleating “Judge, you just don’t understand how things work…” is a wholly inadequate legal argument and indicates a certain level of arrogance. Live by the sword…
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