Posted on 10/05/2010 6:32:41 AM PDT by Pearls Before Swine
Txas Attorney General Greg Abbott called for a halt on foreclosures Monday amid nationwide scrutiny over the way they are processed.
Notices to suspend foreclosures were sent to 27 loan servicers doing business in Texas, including Bank of America and JPMorgan Chase, the attorney general's office said. It did not have the full list of companies available late Monday.
The office also called for a halt on the sales of properties previously foreclosed upon, which might affect auctions scheduled today, and on evictions of people living in such properties.
(Excerpt) Read more at mysanantonio.com ...
Oh yeah, prices will be boosted! This whole mess and the emerging mass of “blighted titles” should give buyers a LOT of confidence in the titles to the properties they want to by...
Especially when people who “bought” foreclsures in the past several years find out - they don’t really own them and may even owe damages to the former owner that won’t be covered by defunct title insurance policies they were forced to buy
So the title insurers should rapidly go out of business and the lenders would be insane to lend without title insurance
whoopee! Cloward Piven on a roll
sarc
Buyers- run away, run away very fast
I was looking at this from a longer term perspective.
Like I said... it was another opinion.. not mine. BTW, I heard that title insurers are refusing to insure the titles from foreclosure sales while this mess unfolds.
Here is the thread with a totally different title from yesterday. Lots of comments for everyone to view.
Foreclosures of tax liens might be the best way to clear title to some of these properties. In Texas (and I suspect in all states), tax liens are superior to mortgage liens. Therefore, foreclosure of a tax lien eliminates all mortgage liens (even if the tax came due long after the mortgage was filed of record). It does not matter who is living in the property sold at a tax sale (people in the armed forces might be an exception, at least during a deployment), the foreclosure of the tax lien cuts off all other liens and all ownership claims. Some states may allow a certain time after a tax sale during which owners or lienholders may redeem the property; but I am almost certain that Texas does not have a redemption period.
So, the best strategy might be to stay in the house, pay neither mortgage nor taxes, and bid on the home at the tax sale, thus clearing title to yourself. Noooo, that can’t work, can it? There oughta be a law....
The housing market needs to "rebound" to where it was in 2004-06 just about as much as a recovering PCP addict needs a good, strong hit.
We are just barely getting back to where home prices are in line with incomes. Need to stay there.
I wasn’t saying that price levels need to return to a particular level, but the market won’t clear and return to truly market-based pricing until the defaulted loans are cleared. The uncertainty created for the market by the homes held in limbo prevents true market pricing.
Without Title Insurance there wont be any “sales” at least using conventional lenders
The tax accrues with interest until you die or sell the property.
Let me throw a straw-man comment here- If I stopped paying property taxes at age 65, and lived for 40 more years, my property could be in arrears so far that nobody would be able to afford to pay the back taxes.
*Ping
Right now we have a contract to buy a property that was foreclosed on a while ago by Fannie Mae. We have an earnest check in escrow with a title company and a close date of Oct 15. We do have title insurance, but what does this mean for us? Will our deal be canceled?
You should be fine...you will close on time it appears...talk to the title company...
I have a problem believing that story.
When I purchased my home, I had a written agreement with the bank on the purchase price and interest.
Even if the bank that purchased his loan mistakenly put the purchase price at $350,000 instead of $35,000, all the home owner would need to do is produce his written agreement.
And his so-called attorney advising him to file for bankruptcy is absolutely stupid.
His attorney should have just filed suit and taken the bank to court with the written agreement that the home owner had from the previous bank if Chase refused to abide by that agreement.
Something about this story doesn’t smell right.
This strikes me as obamunism on steroids. I wonder why Abbot is playing along.
Declare a year of Jubilee! All debts forgiven~!
“it may go Federal, as each state has its own real estate recording laws. This is an incredible mess. “
Don’t you just love it how people take every excuse they can to centerline power in Washington D.C whether their authorized to do it or not.
The Federal Government never had any legitimate business in the mortgage industry, indeed its their involvement in this industry that caused this financial crash in the first place.
Yes this may be a mess but it is NOT a “national mess” requiring a centralized solution. The only thing Washington needs to do is get it self out of the mortgage business.
KILL Fanny and Freddy and all associated Federal regulations and FED “investments” in theses industry’s.
Kill the FHA.
http://www.hud.gov/offices/hsg/fhahistory.cfm
The Federal Government has no legitimate business financing or regulating with public money private business adventures whether they be for big corporations or individuals.
None of theses things are anywhere authorized in the Federal Constitution and thus they SHOULD NOT BE DONE BY THE FEDERAL GOVERNMENT!
The Federal Government should buy what they need to operate in their legitimate field of defense against out of state threats from the market and GET OUT. It is NOT the job of the Federal government to pick winners and losers, or decide how people should interact in the market.
Not every problem has a government solution, and MOST problem which do have government solutions do not have legitimate Federal government solutions.
So don’t you dare attempt to clean up this mess, you the Federal Government have created this mess with all your previous attempts to clean up previous messes which you had also created.
According to him he gets the title. His lawyer filed for the title with the town and the house will be his. Haven't talked to him in a while but that's the last I heard.
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