Perhaps the most critcal document making up the bank's checklist of forms needed to foreclosure on a New York State property is the "Assignment of Mortgage". The Assignment is the authority demonstrating the new bank's ownership of a mortgage and its legal interest in the foreclosure.
The now defunct WAMU, acquired by JP Morgan Chase in 2008, has seen less Assignment of Mortgage documents on its books according to findings and mortgage audit reports made public.
WAMU had failed to properly record its ownership of loans during activities prior to a 3 year period before being taken over by Chase. During this period, WAMU failed to produce the required Assignment of Mortgage to county officials for loans it assumed and held.
Without an Assignment of Mortgage, the bank's foreclosure action is simply unenforceable New York courts have held.
In fact, in cases where Chase commenced foreclosure actions pursuant to the WAMU acquisition, Assignment of Mortgage records were subsequently generated by Chase even as long as 7 years after WAMU had taken initial ownership of the mortgage.
The inadequate recording by WAMU [Chase] of its ownership status of mortgages can result in favorable decisions for homeowners seeking to defend their home against a foreclosure action involving a WAMU held loan.
New York homeowners in foreclosure with loans once held by WAMU after 2005 should have their mortgages audited by a qualified professional. A mortgage audit can develop information which can result in dismissal of a New York foreclosure action.