The Law Office of Carol A. Molloy

AZ Bankruptcy Judge Says “Show Me The Note” Posted on November 10, 2010 by Foreclosureblues AZ Bankruptcy Judge Says “Show Me The Note” Today, November 10, 2010, 13 hours ago | twist The fourth time might be the charm for Andrew Bailey, who has been fighting BONY Melon over their right to foreclose: Judge Curley, the head bankruptcy judge in Arizona just ruled minutes ago that the Bank of New York-Melon must produce the custodial records in their vault in a case against an Arizona homeowner, thereby producing the note and all other docs. This is a transformational decision. As Market Ticker explains: This decision changes literally everything – at least for Arizona. If it spreads, and it probably will, it will change everything period. If BONY doesn’t have the documentation in their custody, with proper endorsements, then there’s gonna be trouble. You can bet the banks will try to bury notice of this way off the front page, but they’re not going to get away with it. The key issue here has always been whether the people buying these securities were really buying what they thought they were – and maybe whether they were buying anything at all. Right now in the New York area it is estimated that judges are dismissing 20%-50% of foreclosure cases due to sloppy paperwork. So far though, no one has walked away with a free house: The foreclosure dismissals in this area of New York have not delivered free homes for borrowers. With so much at stake, lenders in this part of New York are aggressively appealing foreclosure dismissals, which is likely to keep the legal system bogged down, foreclosed homes off the market, and homeowners … in legal limbo for years. Homeowners might not be walking off with free houses, but many are staying in homes payment-free while the appeals go on. Considering how long it is liable to take to straighten this mess out, that free ride could go on for quite awhile. If you want to see the fourth appeal made by Bailey, you can see it here.