Real LI

Who exactly owns your mortgage?

The question is not so easy these days since loans are bundled into packages and sold as securities to investors. When homeowners fall behind on payments, lenders often start a foreclosure process on behalf of the loan's owners -- the investors who bought the security which contained the loan.

But a recent court ruling in Ohio shows that ownership is not so clear cut. The New York Times is reporting that a federal judge in Cleveland dismissed 14 foreclosure cases, saying that the mortgage investors failed to prove ownership.

With foreclosure rates rising on Long Island and around the nation, those facing the loss of their home might be able to stall the process or force lenders to negotiate with them.