The article “Waiting 7 Years for 2 Answers” (New York Times on Sunday, February 27, 2011) discussed the case of Zella Mae Green of Decatur, Georgia. She challenged whether Wells Fargo possessed the documentation it needed to foreclose against her. She asserted that because Wells Fargo could not prove it actually owned the loan, it could not foreclose. Ultimately, Wells Fargo agreed to settle Green’s lawsuit against it for a confidential and undisclosed amount.
The clear lesson from this case is that a lender must be able to prove that it owns the loan it is foreclosing upon. Therefore, it is incumbent upon a borrower that is the subject of a foreclosure to obtain from the lender appropriate documents demonstrating the lender’s ownership. As demonstrated by Ms. Green’s situation, when a borrower demands proof that the lender owns its own loan, that borrower may be in for a pleasant surprise.
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