“People who bought homes in foreclosure face their own worries, as paperwork errors raise questions about the validity of the titles needed to prove ownership. “Defective documentation has created millions of blighted titles that will plague the nation for the next decade,” says Richard Kessler, an attorney in Sarasota, Fla., who conducted a study that found errors in about three-fourths of court filings related to home repossessions”.
Incredible. Here is the full article. Perhaps courts will require full inspections to see what the conditions of the properties are in. We can only hope. It seams that we are the only honest home related industry left.
"A defective title means the person who paid for and moved into a house may not be the legal owner. “This is the most important issue of the whole mortgage mess,” says Glenn Russell, a Fall River (Mass.) real estate attorney who won a case last year that reversed a foreclosure because of faulty paperwork. “Families are being thrown out of their homes by people who may not have the right to do that.”
OCALA, Fla. — Amanda Ducksworth was supposed to move in to her new home this week, a three-bedroom steal here in central Florida with a horse farm across the road. Instead, she is camped out with her 7-year-old son at her boss’s house.
Like many buyers across the country, Ms. Ducksworth was about to complete the purchase of a foreclosed house when it suddenly went off the market. Fannie Mae, the giant mortgage holding company that buys loans from commercial lenders, is pulling back sales of homes that might have been foreclosed in bad faith.
Three major mortgage lenders — Bank of America, GMAC Mortgage and JPMorgan Chase — have said they are suspending foreclosures in the 23 states where they first need a judge’s approval. They are also waving off Fannie Mae from selling any of the foreclosed homes whose loans they sold to Fannie.
Foreclosure sales will grind to a halt, and we will no longer be inspecting them for buyers. Our business will suffer. This morning:
WASHINGTON — Bank of America, the nation’s largest bank by assets, is placing a moratorium on all foreclosure proceedings and sales across the United States, according CNBC and a report on The Wall Street Journal’s Web site. The postponement takes effect Saturday.
Separately, PNC Financial Services Group Inc. is halting most foreclosures and evictions in 23 states for a month so it can review whether documents it submitted to courts complied with state laws.
And state lawmakers spend more time worrying about home inspection laws. They need to worry more about lobbyist ties to these mortgage and association groups who pay into their campaign funds. Courts may find out, through heavy investigations, who are really behind all of these rules and regulations that are hurting the RE industry nationwide.
I can go on and on about this subject. The light is coming on.