This CNN story from earlier today highlights something I’ve been seeing recently in my practice: in many foreclosure cases, the lender can’t even produce the mortgage note—in other words, they can’t prove they’re the holder of the debt.

During the credit bubble, these mortgages were traded and repackaged so many times in so many different ways that the banks and servicers got lazy and sloppy with recordkeeping. They simply never thought they’d be called on it, it seems. Now they’re being called on it, and they’re in a bit of trouble.

When I represent a client in a foreclosure proceeding, the very least  I expect from the “lender” is that it be able to show that it is the lawful owner of my client’s debt. Increasingly, the lenders are finding out that bankruptcy judges get a bit irked if they can’t. Stay tuned.