Justice Laura Jacobson, sitting in the Foreclosure Supreme Court Part in Kings County (Brooklyn), recently dismissed a foreclosure lawsuit because the financial institution that brought the lawsuit did not have standing to sue. Saxon Mortgage Services brought a foreclosure action against the homeowner. Saxon did not own the note. The note had been sold to Morgan Stanley in 2007. Morgan Stanley entered into an agreement with Saxon Mortgages Services to have them handle the servicing of the note. However the defendant (the homeowner) never received notification of the transaction between Saxon and Morgan Stanley. At the time the lawsuit was initiated Saxon it was not the owner of the note and mortgage. Their position was they were bringing the action as a servicing agent for Morgan Stanley.
Judge Jacobson in her decision stated, “the summons and complaint in foreclosure did not provided the basis for which Saxon brought the foreclosure proceeding. Saxon in its pleadings did not properly set forth its status as a processing agent.” The homeowner did not know who the principal and owner of the note was during the entire course of the proceeding. As a result, Justice Jacobson granted an application by the defendant to have the foreclosure action dismissed do to Saxon’s lack of standing.
Standing To Sue
If your home is being foreclosed on by an institution that was not the original institution who made the loan, you should consult with our Law Office as to whether they have standing to sue! If they don’t have standing to bring the foreclosure lawsuit, we can have the case dismissed.
