Begos Horgan & Brown LLP
From The Firm — Press Release
COURT DECISION TO HAVE DRAMATIC EFFECT ON MORTGAGE FORECLOSURES IN CONNECTICUT
WESTPORT, CT, Dec. 8, 2011 – A recent Connecticut Supreme Court decision will make it more difficult for Connecticut mortgage lenders to foreclose. "This decision adds a significant tool for those of us defending clients against foreclosure," points out Christopher Brown, a foreclosure defense attorney who represented the borrower in this case. He is a named partner in the Westport law firm of Begos Horgan & Brown LLP.
The case involves the question of which institution is allowed to start legal proceedings to foreclose on a home. "Until this decision, lenders believed they had the right to foreclose merely by demonstrating that they were the 'holders' of mortgage notes. In legal terms, the holder generally means the institution has possession of the promissory note," says Brown. "But, possession does not equate to ownership under the law. That's an important distinction and this decision makes it clear that it is a critical one. It says that only the owner of the debt has the right to foreclose on the mortgage. It also says that the borrower can force the lender to prove its ownership of the loan. This is significant because many foreclosure lawsuits are brought by 'holders' who do not own the debt. For example, in many cases where Fannie Mae and Freddie Mac own the debt, the foreclosure lawsuits are brought by mortgage servicers. They only possess the note. They do not own it."
What does this mean to those threatened with foreclosure? If the wrong entity files the foreclosure, it cannot go forward. "This decision confirms that if the party that started the lawsuit cannot prove ownership, the case must be dismissed," says Brown. "Those cases will need to be re-started by the true owners and these institutions sometimes cannot be found or don't want to come forward."
Attorney Christopher Brown's practice concentrates on foreclosure defense and debtor-creditor law. He has been litigating financial cases for 19 years, representing borrowers in residential and business foreclosures and parties on either side of a debtor-creditor or other financial dispute.
His foreclosure defense work came to the attention of the legal and consumer press starting in 2008 when he handled several ground-breaking foreclosure cases in which he took on and beat the mortgage industry in foreclosure matters.
About Begos Horgan & Brown LLP
Begos Horgan & Brown LLP engages in sophisticated business, financial and
insurance related litigation, trials and appeals in all courts, state and federal, in
Connecticut and New York as well as securities arbitrations before the Financial
Industry Regulatory Authority ("FINRA").
Their practice areas include general commercial and corporate disputes, securities litigation, debtor/creditor disputes, insurance coverage disputes, real estate litigation, employment-related litigation, real estate purchase and sales and trust and estates.
In 2008, the firm was cited by the Connecticut Law Tribune as one of the state's "Dozen Who Made a Difference." They have also been recognized as one of the nation's "Go To" law firms by Corporate Counsel and as one of the state's best General Law firms by the Commercial Record. They have offices in Westport, CT and Bronxville, NY. For more information see www.begoshorgan.com.
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