The Ibanez Ruling by the Massachusetts Supreme Judicial Court: US Bank National Association (as trustee) vs. Antonio Ibanez (1/07/2011)
FORECLOSURE NULLIFIED: Assignment of the mortgage received after the foreclosure.
1. Ibanez executes mortgage with Rose Mortgage Inc.
2. Rose allegedly assigned the mortgage to Option One.
3. Option One then assigned the mortgage to Lehman Brothers.
4. Lehman Brothers allegedly assigned the mortgage to Lehman Brothers Holding.
5. Lehman Brothers Holding packaged the mortgage with 1000 others to be sold as a security.
6. The mortgages were to be placed with Asset Securities Corp. Asset Securities Corp. was then to assign the mortgages to US Bancorp as trustee.
7. In the event of a foreclosure, it was the job of US Bancorp to do so on behalf of the trust and in the interest of the bondholders.
8. To have the court rule in their favor, US Bancorp needed only to show documentation of each link in the chain of assignments. Because they could not do so, the foreclosure was overturned.