Kentucky Judge Chucks Foreclosure Judgment After Review Reveals That Named Mortgage Note Holder Does Not Exist

Buried at the end of a New York Times story on the ongoing frenzy attributable to faulty foreclosures is this gem:

• Charlotte and Thomas Sexton, of Carlisle, Ky., fell behind on their mortgage payments because the payments on their adjustable-rate mortgage spiked upward and Charlotte Sexton lost her job. They tried unsuccessfully to sell the home, to refinance it and to modify their mortgage payment.

• When the Bank of New York Mellon filed a foreclosure notice last summer, they went to a local lawyer, Brian Canupp, who, with the help of a forensic accountant, found a problem in the foreclosure filing.

• Last month, a judge tossed out a foreclosure judgment after Canupp argued that the mortgage trust that claimed to own the Sextons' promissory note did not exist.

Source: Facing Foreclosure, Homeowners Want Legal Recourse (Lenders To Answer For Errors).