A result that is troubling for residential mortgage creditors and servicers was entered by Bankruptcy Judge Robert Somma in a decision in the Massachusetts Bankruptcy Court case, Robert H. Strayton v. Champion Mortgage, Adversary Proceeding No. 06-1394-RS issued on January 17, 2007. The court allowed an injunction to stand which prohibits the completion of a previously conducted mortgage foreclosure sale pending final determination of the merits of the adversary proceeding. Of concern to the mortgage industry is the criticism of the foreclosure procedures the lender and its agents followed in conducting the foreclosure sale that is the subject of the case.

Please see full alert for more information.