How can an entity foreclose on a home they don’t own?
The short answer is no. If you’ve been foreclosed on, you may want to check your records and see exactly who it was that performed the foreclosure. In August the Washington Supreme Court unanimously de died that the giant lending clearing house MERS (Mortgage Electronic Registration Systems) could not foreclose on a home because they could not prove that they they owned it. Further more, the court also ruled that homes unlawfully foreclosed on by MERS and anyone else who could not prove ownership may meet the criteria for consumer affairs lawsuits. I would expect to see class action suits in short order.
If you’ve been foreclosed on by MERS or thought that tour foreclosure was fishy you may want to seek the council of an attorney.
Here’s a story from the Seattle Times from August.