Judge Shelley C. Chapman | FORECLOSURE FRAUD | by DinSFLA

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DailyFinance | Why Paperwork Matters: Consider This Mortgage Mess

DailyFinance | Why Paperwork Matters: Consider This Mortgage Mess


D Posted 12:00 PM 01/20/11

Judge Shelley C. Chapman, of the U.S. Bankruptcy Court for the Southern District of New York, has ordered HSBC and Litton Loan Servicing (a Goldman Sachs subsidiary) to send officers with some juice — and not low-level types — to her Manhattan courtroom on Feb. 10 to explain themselves. More specifically, to explain their failure to provide adequate documentation about a mortgage they claim to own and service. Judge Chapman also ordered the Texas attorney who signed the documents to show up.

At issue is the fact that HSBC (HBC) hasn’t come close to proving it owns the loan, and the documents it has submitted look funny. It also doesn’t appear to have been acting in good faith when it comes to trying to modify the loan (also known as “loss mitigation”). So, the judge wants to talk to people who actually know things and can make decisions.

How Did HSBC Get the Note?

Here’s the story:

[ipaper docId=47202520 access_key=key-vza4t37w3bicrfhw5ga height=600 width=600 /]

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