Friday, March 30, 2012

Suit Alleges Das Dummkopfe At Deutsche Bank Can’t Foreclose In Arkansas

Kaitlin Ugolik, Law360

Deutsche Bank National Trust Co. was hit Thursday with a proposed class action in Arkansas seeking a declaration that the bank wasn’t authorized to operate in the state when it foreclosed on homes and transferred their titles in 2010.

Deutsche Bank, acting as trustee for Morgan Stanley ABS Capital I Inc. and other foreign and domestic trusts, conducted many foreclosures and foreclosure sales in Arkansas without obtaining the proper certificates from the secretary of state, invalidating all of the related title transfers, according to the complaint.

“Because [Deutsche Bank], [the Morgan Stanley trust] and all other similarly situated mortgages and trustees failed to comply with the requirements of the Statutory Foreclosure Act, all purported foreclosures are invalid, and [the defendants] did not acquire title to the real property in which they purported to foreclose their mortgage interest,” the complaint said.

The named plaintiffs in the putative action, Johnathan D. and Lydia A. Dial, purchased a foreclosed property in Pulaski County, Ark., from Deutsche Bank in March 2010. The property had been foreclosed upon in January, when Deutsche Bank took ownership in its capacity as trustee.

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