For many years mortgages have been bought, bundled together and sold: Yep, the mortgage documents often get lost. Believe it or not homes are often foreclosed on by banks who cannot produce evidence that they hold a mortgage on the property in question. They just foreclose on the home and then petition the court for a title to the foreclosed property.
There have been cases where two lending institutions have both claimed to hold the mortgage on a piece of property but neither could produce the documentation.
Homes that have no mortgage have been foreclosed on:
There are some recent court decisions that have put a damper on the practice of foreclosing on property without evidence that the bank actually holds a mortgage on the property. Needless to say the banks are not happy with those court decisions.
Quote:
NEW YORK (Reuters) – In a decision that may slow foreclosures nationwide, Massachusetts' highest court voided the seizure of two homes by Wells Fargoand US Bancorp after the banks failed to show they held the mortgages at the time they foreclosed.
The Supreme Judicial Court of Massachusetts' unanimous decision on Friday upheld a lower court ruling. It is among the earliest cases to address the validity of foreclosures done without proper documentation.
That issue, including the use of "robo-signers" who approved foreclosure documents without reviewing them, last year prompted an uproar that led lenders such as Bank of America Corp, JPMorgan, Chase and Ally Financial Inc to temporarily stop seizing homes.
Wells Fargo and U.S. Bancorp lacked authority to foreclose after having "failed to make the required showing that they were the holders of the mortgages at the time of foreclosure," Justice Ralph Gants wrote for the Massachusetts court.
In a concurring opinion, Justice Robert Cordy lambasted "the utter carelessness" that the banks demonstrated in documenting their right to own the properties.
Courts in other U.S. states are considering similar cases, and all 50 state attorneys general are examining whether lenders are forcing people out of their homes improperly.
Friday's decision applies in Massachusetts, and need not be followed by federal judges or by courts in other states.
Nonetheless, "it will be certainly cited as persuasive authority by anybody in a similar scenario who's trying to hold onto his home," said Robert Nislick, a real estate lawyer at Marcus, Errico, Emmer & Brooks PC in Braintree, Massachusetts.
LEAVING PAPERWORK BEHIND
Analysts said the decision may also raise the specter that loans transferred improperly will need to be bought back.
"What they were doing was peddling these mortgages and leaving the paperwork behind," said Michael Pill, a real estate partner at Green, Miles, Lipton & Fitz-Gibbon LLP in Northampton, Massachusetts who is not involved in the case.
The Massachusetts court rejected a request by the banks to apply the decision only in future cases, leaving homeowners already foreclosed upon without a remedy. Gants chided the banks for ignoring settled rules in their "rush" to sell mortgage-backed securities.
I guess the answer is that the banks ought to keep better track of their records! Not that I'm an enemy of business or of banks, but c'mon!
On a somewhat unrelated line . . . I sometimes worry about getting my house paid off and then having the bank deny that the mortgage has been paid in full! I'm hoping my wife keeps better records on all this stuff than I do!!!
Do they make some mistakes, sure. However, we need this foreclosure process resolved so the banks can get these properties foreclosed and sold. It's killing our housing market.
__________________
John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
It is estimated that one million homes will be foreclosed on this year. In some areas it is hard to sell any home, foreclosed or otherwise.
There are three homes listed for sale on our block. All three have been listed for more than 6 months. One has been empty for three years. It's never going to sell for a decent price because the builder was a scam artist who took shortcuts: The house has major structural problems.
Well falcon, that's the problem with government. Those who can't build become inspectors. Its their fault if there are major problems. I know my inspector wasn't worth crap. He had me doing suff to my electrical that wasn't required by code. The best is he missed a major issue but thank god my engineer caught it. I have 10 to 1e foot ceilings throughout my house. Turns out the studs needed to be either 2x6s or doubled up if they were 2x4s. Like I said good thing it was caught by my engineer.
__________________
John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
Those who can't build become inspectors. Its their fault if there are major problems.
The problem here is that Comanche county, OK has no inspectors-not one. Most homes, including ours, have no outside breaker to cut off electrical power to the house in case of fire. One of the last homes constructed in my immediate area was put up by a lady. She hired a supposedly reputable general contractor recommended by the developer.
That lady is very smart. She had blueprints for everything. She caught the contractor pouring the slab on re-enforcing wire: There was supposed to be 1/2" re-bar on 12" squares. She made the contractor tear up the slab at his own expense and then fired him.
The problem here is that Comanche county, OK has no inspectors-not one. Most homes, including ours, have no outside breaker to cut off electrical power to the house in case of fire. One of the last homes constructed in my immediate area was put up by a lady. She hired a supposedly reputable general contractor recommended by the developer.
That lady is very smart. She had blueprints for everything. She caught the contractor pouring the slab on re-enforcing wire: There was supposed to be 1/2" re-bar on 12" squares. She made the contractor tear up the slab at his own expense and then fired him.
As a Construction Manager with jobs averaging 8-10 million, I can tell you regardless of the type of construction there are many sub-standard contractors and subcontractors. It’s up each individual to seek out someone that can insure the job is produced complaint with topographical building codes.
I worked for my current company where I’m employed full time as a building construction consultant for 8 years, they got tired of paying me $150.00 an hour plus expenses so they out right hired me to oversee all construction nationwide.
It is up to the home owner to make sure the builder does his job, even if they have to hire someone like me to oversee it...
P.S. Don't call me, you can't afford me.
It is up to the home owner to make sure the builder does his job, even if they have to hire someone like me to oversee it...
P.S. Don't call me, you can't afford me
+1
There are a lot of folks in this area who wish that they had hired someone like yourself to monitor the construction of their homes. A friend built a new home about 7 years ago. I absolutely insisted that he not use a contractor who is the son-in-law of the developer. He hired the scam artist anyway and now his home has badly cracked floors and a cracked foundation.
I once had an arguement with the son of a local builder. The idiot told me that because of the sandy clay soil; the floors would eventually crack regardless of the concrete strength, thickness and the amount of re-bar. Told the guy to go to Ft. Sill and look at the floors of the 60 year old buildings that were being torn down. Not one crack in those floors: There was a COE QA guy looking over the shoulders of the contractor when the places were built.
Banks Lose Foreclosure Fight
