Posted on 07/08/2011 2:03:20 PM PDT by Neidermeyer
OMG! Just when you think you've seen it all, along comes a new horror story that makes the thought of doing short sales even more disgusting than before!!
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The last short sale we did was one we were referred to in October of 2009 (no good deed goes unpunished!!). .... We put it on the market and got an offer for $130K within a couple of weeks! Tom moved out of state to assist his mother in her remaining days on earth and we were happy to have an offer. .... we finally got approval for a sale price of $123k!! (First negotiator said it was worth $180K!!!- Surprise)!
We closed the deal in April, 2010 and both the Seller and Buyer were ecstatic! All was right with the world!
Fast forward to July 2011! Last week, we received a document from our Seller that he had received. Are you sitting down? It was a LAW SUIT on behalf of MERS and Fannie Mae (Plaintiffs) against the Seller and Buyer (Defendants) and a possible 23 other defendants, (Does) who are at this point unnamed!
The Law Suit maintains that: ------------"The Substitution of Trustee and Full Reconveyance on the County records which purports to reconvey MERS's interest in the property is a mistake and was not properly prepared or recorded by ReconTrust. An actual controversy has arisen and now exists between Plaintiffs and Defendants concerning their respective rights and duties in that Plaintiffs contend that the Substitution of Trustee and Full Reconveyance is a mistake and, therefore, of no force or effect which should be stricken from the public records and that Fannie Mae's Deed of Trust is valid and enforceable.!"
(Excerpt) Read more at realtown.com ...
If you ever doubted what you read about the fraudulent conveyances you can stop now...
flage = flags OOPS!
Well that effectively renders anything MERS has tainted as utterly WORTHLESS at this point.
Now when does that WORTHLESS assessment spill back over into certain banks “mortgage assets” they maintain on the books for Federal regulatory compliance?
Next week? Next month? Next year? Next Administration(and then only if its a Republican administration)
Do you have owner’s title insurance? If so it will hopefully cover you on this. Look on your HUD I Settlement statement and look down to the line that says Title Insurance. It should be broken out showing how much for Investor title ins and how much for owner’s. If it shows a charge for owner’s then you do have title insurance.
Nobody put a gun to their heads...lol.
MERS Evidence of Immortal Mortgages Claimed as Active Loan After Fraudclosure or ShortSale
Let's here from the "Moral Contract" crowd! Suckers!
Not my property ,, actually this will help me n a quiet title/slander on title suit I just filed a Lis Pendens for ...
Here’s Judge Schack’s latest and it’s a doosey!!!
Am I right in saying that this seems like MERS, the mortgage document company used and owned by Fannie, screwd up so it is now the previous owner’s and buyer’s fault???
Title Insurance is a good thing to have. I alway’s urge my clients to buy it. Its a one time cost and it runs the life of your ownership.
Before you but any property now a quiet title action is imperative. In some states they are a PITA, but necessary. If the folks in the story had done that they could tell MERS to go pound sand.
I wonder if these people that are named defendants in this lawsuit can counter-sue under the RICO statutes?
I would be surprised if they didn't. Ironically, it brings up quite a few legal issues that would include the foreclosure itself.
At some point in time people are going to realize these "innovations" are utterly fraudulent and have destroyed the economy, perhaps for good.
Then again...maybe not.
If the Option is open then I hope they do counter-sue it. In some ways this looks like the same sort of stuff Righthaven was pulling only with mortgages.
Those title insures in shape to pay a bunch of these cases off?
That's too funny. If anybody get's paid it will be one of the Ponzi players.
We'll be seeing much more of this...and it won't be just short sales.
If you have title insurance which most people purchase at closing then they should defend you in court. Thats what its for.
If you have title insurance which most people purchase at closing then they should defend you in court. Thats what its for.
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Most people aren’t even provided a copy of the title insurance policy at closing because they aren’t a party to the policy ... The policy you buy at closing always names the lender as beneficiary ,, you’re just the person paying for it ... YOU GET NO BENEFIT... you can be added as an additionally named insured at minimal cost but this is rarely done.
This is why most foreclosure real estate in my city has been sold with a “special warranty deed” for cash only for a long time now ... a “special warranty deed” only covers the time period the property was owned by the immediate prior owner, typically a confederate of the party pretending to have a beneficial interest and is the party actually pursuing the foreclosure (although they will typically hide behind the servicers name or by substituting in a “new” trustee)...
At some point in time people are going to realize these “innovations” are utterly fraudulent and have destroyed the economy, perhaps for good.
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I have property in an asian country that was occupied by Japan during WW2,, here we are 70 years later and the property records are still a mess there ,,, I can’t begin to tell you how damaging that is...
We can still fix our mess , the records aren’t gone ,, there are holes but most of the damage can be repaired. The banks will squeal ... The real question is does our government have the collective balls to put things right or not. I say we are still a nation of LAWS... I will not miss Bank of America , Wells Fargo or JPM Chase ... at least any more than I miss WAMU... /s
“The policy you buy at closing always names the lender as beneficiary ,, you’re just the person paying for it ... YOU GET NO BENEFIT... .”
Wrong. At closing the attorney or title company depending on who is acting as the closing agent on the loan always offers the buyer “owners” title insurance which is a separate policy to protect the buyer. Almost all people accept it. There is a one time fee in addition to the “Lender’s Policy fee”. The attorney and usually the real estate agent and the mortgage broker or loan officer will always encourage you to take the owners policy even though its optional. In my 17 years as a mortgage broker only a handful of people ever failed to take the owner’s policy. Its pretty standard.
If you own a home and you have a loan on it you likely have owner’s title insurance unless you refused it at closing.
On top of the twenty percent down, perfect credit to show your lender (who has probably been bailed out a few times, is a defendant in thousands of lawsuits, also under investigation for all types of fraud), and two or three jobs - prospective buyers and sellers have to factor in the cost of being sued.
Why?
The "obligation" has been sold more than once by Wall Street Pioneers! Ha Ha!
You got it Chunga85! No one put a gun to their head. They made the deal now they need to except the consequences! Or well they turn into ‘dead beats’ and fail to pay up! /sarc/
So where are all the FReeper resident experts who have sworn for over a year that such things can’t and wouldn’t happen?
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