Bottom line - the Appellate Court says that clerical errors in a default notice - unless they actually harm someone by presenting a "picture" of the foreclosure case that is not really the case - don't have standing. I've read that 95% of the cases in contested foreclosures are over clerical mistakes and mis-signings on the default notice.
So... if you are flat broke, haven't made a payment in a year, don't have a job, and a dog's paw print signed your default notice or the Bank's address really isn't 8th street (it's 9th street) or a 100 other non-germane errors - LOL. You're out of the house anyway. No bananas for your monkey today. The loan servicers (BAC, WFC, JPM) win.
California is a big state - one of the nation's foreclosure capitols. This could mean that 2011 and 2012 become the years of the "big flush" to push the foreclosures out of the system and get us back to a more normal market. I didn't know how this was going to go down, but Pulte was affected by this in November-December too. I just couldn't imagine these robo-signing suits to work against the banks because 1) they were so overwhelmed with cases; it's obvious under those conditions that small mistakes would be made; the courts aren't stupid and 2) the plaintiffs hadn't paid on their mortgage debts in months. So the whole thing was just smoke and mirrors and an example of "My lawyer can beat up your lawyer".
You buy a house. You get a mortgage. A bank gives you hundreds of thousands of $$$ to pay the seller. The seller, usually, takes most of that money and pays of his outstanding mortgage to his lender and if he's lucky has some $$$ left over. You now owe the money back over 10,15, 20, 30 years to the bank that lent you the money. Usually the bank hires a "servicing company" to manage the loan....you know, do the accounting, the amortizing, mailings, interest/1099s etc. The bank pays a fee to the servicer for doing that for him. Sometimes the bank owns the servicing company as a subsidiary. Neverthless, the bank has a separate entitiy "manage" the loan for thm. You, as the borrower, do not owe the money specifically to the servicer. You owe it to the bank. You just deal with the servicer. Sometimes, the bank, after making the loan to you sells your mortgage to someone else...maybe another bank or financial institution. It doesn't change the terms of your mortgage. It doesn't matter, really, who owns your mortgage. You borrowed x anount of money and you have to pay it back through the service provider. Sometimes, even the mortgage provider will change, but again, it doesn't change the initial terms of your mortgage contract that you signed at closing. YOU OWE THE MONEY.
Now people who lose their jobs or can't handle the interest reset or can't sell the house they always thought they would be able to "flip" or whatever can't make the payments. I'M SORRY TO HEAR THAT. YOU STILL OWE THE MONEY.
The lender...i.e., whoever owns your mortgage, through his agent the mortgage service provider forecloses on you. They have 10's of thousands of these defaulted on mortgages to foreclose on. And, not surprisingly, some mistakes get made in the process. Names are spelled wrong, addresses are goofed up. Dates get reversed...whatever.
If you havn't been paying the mortgage....you have to get out of the house. Sorry.
To be sure, there are some people, but very very few who have been diligently and responsibly paying their mortgage per the terms of their agreement and have still been erroneously foreclosed upon. Those people have a grievance. They're the ones getting the shaft. There are a lot of them as a % of the total foreclosures.
I hope this ruling will do as it should. Get these deadbeats out of their houses, get these foreclosed houses sold or bulldozed under and get on with getting the housing market back where it should be.