SPRINGFIELD, Mass., Oct. 9 (UPI) -- A Massachusetts judge has cast a shadow over thousands of property transactions after invalidating two foreclosures, various attorneys say.

At issue is proof of who holds the mortgage. Lenders bundle up thousands of mortgages during boom times to resell to other banks in a process that eventually leaves a murky paperwork trail to which firm actually holds the mortgage, The Boston Globe reported Friday.


When it came time to act on a foreclosure, many firms believed it was permissible to prove they held the mortgage after the foreclosure was complete.

In March, Judge Keith Long of the Massachusetts Land Court ruled two Springfield foreclosures were invalid because lenders had yet to prove which one held the mortgage.

While the decision is under review, "there are thousands and thousands of titles that have gone through foreclosure with these late filed" ownership records," said attorney Lawrence Scofield.

"It has put some properties in the state of limbo," said Evelyn Friedman, director of Boston's Department of Neighborhood Development.

A new ruling could put thousands of sold properties into legal disarray.

"If a property has one of those arguably defective foreclosures in its back title, right now you may not be able to refinance or sell it,'' said attorney Christopher Pitt.