Lenders must hold mortgage and promissory note to foreclose in MA Reply

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The Massachusetts Supreme Judicial Court handed down a ruling stating that a lender must hold the mortgage of a property and the promissory note in order to foreclose on a property, according to a Masslive.com Associated Press report.

The ruling deals with a Boston homeowner who sued Green Tree Servicing, LLC who sold her home to Fannie Mae via foreclosure sale in 2010.

With this ruling in place, it clarifies state law regarding the documentation that needs to be in place in order for a lender to foreclose on a property. However, the decision only applies to foreclosures that take place in the future. It does not apply to foreclosures that took place prior to the June ruling.

The reason that the commonwealth’s highest court didn’t make the ruling retroactive was because it could cloud the title of a lot of properties, a Georgetown University law professor told AP.

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