Title troubles leave some foreclosure sales in limbo - The Boston Globe
Image by respres via FlickrTitle troubles leave some foreclosure sales in limbo - The Boston Globe
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Very interesting article, it'll be very important to those who are either starting down the foreclosure road, potentially righting lenders who may not follow all the rules giving borrowers protections from improper foreclosure actions. Here in Medford, MA we've been lucky to not have as many foreclosures as other communities around us such as Everett and Malden. Still hopefully the ruling will further cement the protections & processes needed by borrowers in this challenging time. It'll also be important to everyone interested in purchasing foreclosed properties and their ability to get funding for their purchases and to make sure their ownership rights are clear.
The purchasing of the foreclosed properties is a needed process to stabilizing local neighborhoods and bringing empty and/or neglected properties back to local owners. It'll also assist tenants for the rental of investment properties as well.
Some highlights of the article;
Foreclosure sales in limbo over title issue
Expected ruling may complicate transactions
By Jenifer B. McKim
Globe Staff / October 9, 2009
A court decision expected as soon as today could negate the validity of sales of thousands of foreclosed homes in Massachusetts, causing havoc for buyers and sellers and further stalling the housing market’s recovery in hard-hit areas.
At issue is proof of ownership at the time of a foreclosure sale. During the housing boom, millions of mortgages were bundled into bonds and sold to investors, a process that resulted in lengthy and twisted paper trails that can obscure ownership. Many lenders believed they could complete foreclosure transactions and later produce formal proof they held the mortgage.
That changed in March when Justice Keith C. Long of Massachusetts Land Court found that two foreclosures in Springfield were invalid because ownership of the mortgages was not clear at the time of the foreclosures.
Long’s ruling, which came as a shock to many who deal with distressed properties, called into question the ownership of hundreds if not thousands of foreclosed homes in Massachusetts, prompting some lenders to delay sales out of fear they could later be voided, title companies to balk at insuring them, and nonprofits to steer away from certain foreclosed homes altogether.