Back in 2005 in Springfield, Massachusetts… What happened next currently has the mortgage and housing market palpitating. U.S. Bank filed a foreclosure complaint on the above loan, but soon found itself embroiled in a legal battle which would become known as the ‘Ibanez’ case. There’s a second mortgage — the LaRace mortgage — involved in the various court cases too but for simplicity’s sake, we’ve focused on Ibanez in the above graphics.