The New York Times reports on a story about a New York judge who wiped away the mortgage debt of a homeowner after the bank failed to prove their claim.

One surprising smackdown occurred on Oct. 9 in federal bankruptcy
court in the Southern District of New York. Ruling that a lender, PHH
Mortgage, hadn’t proved its claim to a delinquent borrower’s home in
White Plains, Judge Robert D. Drain wiped out a $461,263 mortgage debt
on the property. That’s right: the mortgage debt disappeared, via a court order.

So the ruling may put a new dynamic in play in the foreclosure mess:
If the lender can’t come forward with proof of ownership, and judges
don’t look kindly on that, then borrowers may have a stronger hand to
play in court and, apparently, may even be able to stay in their homes
mortgage-free.

It seems that in all the tumult of the foreclosure crisis that a lot of banks haven't been playing by the rules.