Bank Fails Again To Convince NY Bkrptcy Judge It Has Standing To F'close On Bronx Borrower; Invited To Try Again; Admits It Doesn't Know Who Owns Note

In New York City, AOL's Daily Finance reports:

• U.S. Bankruptcy Court Judge Martin Glenn denied Wells Fargo's request for permission to foreclose on Tandala Mims's house in the Bronx for a second time on Thursday because he still wasn't satisfied that Wells -- as opposed to some other bank -- had the right to do so.(1)

• In its attempts to prove its legal standing to foreclose so far, Wells Fargo has submitted two different versions of Mims's note, certifying each as a true and accurate copy of the original. The bank has also submitted a document assigning the mortgage to it that was problematic, as I explained in an article earlier this week.

• One issue with the assignment was that the company allegedly doing the assigning is defunct. Another is that -- through the magic of MERS -- a Wells Fargo employee was signing on behalf of the assigner. Essentially, that puts Wells Fargo on both sides of the contract, a conflict of interest.

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• Describing himself as "deeply concerned," Judge Glenn noted that, in looking at the documents, questions kept "popping out," and he made the point that Wells Fargo hadn't answered the questions he had raised in his initial order against it. In one of the hearing's more dramatic moments, the judge asked Wells Fargo who the investor in the note was -- the MERS database doesn't say -- and Wells admitted it didn't know.

For more, see Judge Rejects Wells Fargo Foreclosure Documents Again.

See Wells Fargo, Upstate NY Foreclosure Mill To Face The Heat In Explaining Dubious Documents Filed In Foreclosure Matter for last week's post on this story.

(1) See In re Mims II - Order. While the judge ruled against Wells, he gave the bank permission to try again, the story states.