In Non-Judicial foreclosure states could Homeowners sue the Certificate Holders of a specific Trust? The answer to this circular question is very convoluted. The short answer is that the investors sue the underwriter and the seller and nobody has ever sued the investors. The answer would depend on the following issues : The investors are the real parties in interest. The money never went into any trust and that it was commingled with all kinds of investors who thought they were dealing with hundreds of "Trusts". The Trusts don't exist unless they have a res. The trusts never received the proceeds of sale of the MBS issued by the trust nor were they ever intended to receive those proceeds, unbeknownst to the investors. The promotional material on derivatives and securitization of residential "loans" repeatedly refer to "bankruptcy remote" and other language stating that the investors don't need to worry about liability for lending violations because they had the protection of the trust layered on top of everything. For the remaining answer to this very simple question (at least in theory), please listen to the Neil Garfield Show. Neil is joined by Calfornia attorney Charles Marshall who can be contacted at: Law Offices of Charles T. Marshall 415 Laurel St., #405 San Diego, CA 92101 cmarshall@marshallestatelaw.com Phone 619.807.2628 Charles Marshall represents clients across the entire state of California.
