Indiana Couple Scores Bankruptcy Court Win In Robosigner Ruling; Judge Says F'closure Docs Were Signed By "Bogus" Employee Purporting To Work For MERS

In Mishawaka, Indiana, The Edmonton Journal reports:

• [Jason and Kristin Koontz ] surrendered one property to foreclosure but say they were still making payments for their house in Mishawaka, Ind. EverHome Mortgage Co. filed a claim on the three-bedroom ranch to ensure its rights in the bankruptcy proceedings.

• But the validity of a key document that Ever-Home used to back up its claim has now been called into question, throwing the status of the Koontzes' mortgage into uncertainty. [... Their] lawyer is assessing next steps after a bankruptcy judge last week said EverHome isn't entitled to a fast judgment in its favour because of faulty paperwork.

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• In the Koontz case, U.S. Bankruptcy Court Judge Harry Dees Jr. in Indiana ruled that a document submitted by EverHome was signed by a "bogus" employee who purported to work for MERS, the nation's central electronic mortgage registration service. Because EverHome couldn't demonstrate a clear right to enforce the loan, a trial may be necessary to sort out control of the mortgage.

• If EverHome cannot prove its rights at trial, it could be reduced to the status of an unsecured creditor, said lawyer Debra Voltz-Miller, who represents the Koontzes. That would drastically reduce the amount it could collect on the loan.

For the story, see 'Robo signer' ruling gives owners loophole in foreclosure cases.