Foreclosure Buyers Beware

[Joseph Burkeson, CMI]

Massachusetts Supreme Court Strips Foreclosure Buyer Of Property


As the nation’s housing market struggles to find bottom amid a glut of foreclosed property, the Massachusetts Supreme Judicial Court has issued a ruling that will make it even harder for lenders in that state to sell properties for full market price.

The state’s highest court, in Bevilacqua v. Rodriguez, held that Francis Bevilacqua, who bought a foreclosed home from U.S. Bank in 2006, never actually obtained title to the property because the lender had filed for foreclosure a few weeks before it obtained an “assignment of mortgage” securing the loan. Sticking strictly to the form of the law, the court ruled that if U.S. Bank didn’t own the mortgage when it filed for foreclosure, then it couldn’t subsequently transfer title to Bevilacqua even though he paid for the property.

More: http://www.forbes.com/sites/danielfi...r-got-nothing/

[James H. Bushart]

Cool.

[Roy D. Cooke, Sr]

Thanks Joe so sad I wonder how many more are out there too.... Roy

[David B. Manley]

How about this: I read a foreclosure complaint last week, where B of A has filed stating they own the property when in fact Fannie Mae does. In addition, the MERS doc is generated and sealed in Delaware but notarized in Arizona AND the complaint instructions tell the homeowner they have 30 days to respond when the actual statute states 20. When does all the S**T end?

[Joe Farsetta]

IN my opinion, the housing crisis has not even come close to reaching its full potential. These are but two examples of fraudulent activity on the part of the banks.

Real property law in the US has always been based on a number of factors, including the proper recording of title. The problem with MERS is that the assignments of the mortgages do not necessarily follow the proper assignments of deeds in the county clerrks office. MERS was a scheme created by the banks to avoid recording fees. NY now has CASE LAW which proved that MERS registration helped to bifurcate the note from the deed. This would effectively mean that the homeowner retains the property, and the bank validates the mortgage, but the mortgage is no longer tied to real property. This translates into a mortgage being discharged in a simple bankruptcy, as an unsecured loan.

Google the following: Brian Bly, Crystel Moore, Robo-sign, and Show me the note.

MAny banks have simply lost the note that people signed, and produce photo copies which are being rejected by Federal and State judges. In the era or Photoshop, judges are now examining the signature lines for indentations made by an actual pen.

I say strip the banks of their power and let the chips fall where they may.