Foreclosure Can Be Valid Without Holding the Mortgage Note

New foreclosure updates from the state of Massachusetts highest court - a foreclosure can be valid even if the foreclosing entity does not have the mortgage note but as long as they have proper authority to act on behalf of the note holder. This new decision was made by the MA Supreme Judicial Court, overturning the lower court.

The entire basis of this recent decision by the Supreme court started with a foreclosure law case at the lower court level between Fannie Mae and Henrietta Eaton of Rosindale, MA. Eaton's claim was that Fannie's foreclosure lacked validity as they were not holding the note of her property or the proper authority to act on the foreclosure. This is believed to be a step forward for homeowners as it will put more due diligence on the servicer and allow homeowners to understand who exactly owns their home loan.

View the court case Eaton v. Federal National Mortgage Association