I have been trying to tell the Do-It-Yourself Legal Eagles aka Pro Se litigants for years that you can not invoke rulings from other states in your foreclosure defense when you go to into federal court. This is another example of what I’m talking about. -Steve

Kerri Ann Panchuk, Housing Wire

The U.S. Fifth Circuit Court of Appeals gave servicers foreclosing in Texas the green light to proceed with a foreclosure even when the servicer lacks possession of the note.

In a case called, Martins v. Bac Home Loan Servicing, the Fifth Circuit interpreted Texas law as granting servicers a right to foreclose without the note as long as they have a viable mortgage assignment.

The case nullifies the ‘split-the-note theory’ in Texas and other states within the Fifth Circuit’s jurisdiction. Split-the-note is one of the main legal theories used by homeowners when challenging a foreclosure.

Read more here

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