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A recent Land Court Decision Affecting Foreclosures in Massachusetts

Posted on: 09th Apr, 2009 09:00 am
A recent Land Court decision that is currently a hot topic of discussion among conveyancers and underwriters in Massachusetts. Essentially, the court has invalidated any foreclosure sales where the mortgagee did not hold the mortgage via an unambiguous assignment dated prior to the date of sale. I have seen similar decisions coming out of bankruptcy courts, but this is the first time that a state court in Massachusetts has opened on this subject with such great detail. While most of New England states have judicial foreclosures, and the issue of the mortgagee's identity may be resolved by the court prior to the sale, I wanted to share this recent development in Massachusetts with you.
Does anyone have any information re: this change?
"our money is being held.....we cant move either way until the Bank says so or we lose our deposit ! ", ..... . Did your agent tell you this? ....you have every right to walk away will full deposit and move on...why are you hanging on? ..you will get your full earnest money bank...if your agent told you that you will not get your money back...have a real estate atty call the broker , and you will recieve full deposit within 24hrs
Posted on: 10th Jul, 2009 06:24 pm
We all started looking at foreclosed houses because there were tons of those houses on the market. Buying any house is huge and I know for myself that if there had not been so many houses to chose from, in my personal price range, I would never have had a chance to afford a house in a market that had been moving way out of whack for a long time.

I am sorry that so many people lost those houses in the first place. I watched the lists for months before I decided to take the plunge and let myself get caught up with thoughts of owning a house after raising 3 kids in an apartment, putting them through college while working for over 30 years.

Where would you have us move on to? Maybe we should consider the higher priced house that wasn't foreclosed on in the middle of the block where 4 or 5 houses have been foreclosed? Those foreclosed houses are now standing empty - soon to be untended because no one knows who is responsible for the upkeep until some decision is made.

Why are we hanging on? Because we found a way to afford a piece of a dream and until someone tells each one of us that we are not allowed to buy into that dream then I, for one, am going to stick it out.

It's frustrating to all of us but I don't think it's foolish to try to hang on until we KNOW something different.
Posted on: 10th Jul, 2009 08:12 pm
Hi Blown Away!

Did Scott Smith's voicemail say that Judge Long was on vacation too? And he isn't sure if he is away for one or two weeks? That sounds a bit strange! As far as I know I still have a valid Purchase and Sales Agreement, but doubt Wells Fargo will give me another extension.

Also, to King: I, and others here too I'm sure, are trying to hold on to the deals we have because the homes we have agreements on are right for us and at the right price. I have been watching the MLS and there have been no other homes in the past few months that I have been interested in or that are in my price range. Peter
Posted on: 11th Jul, 2009 03:25 am
King: No, my realtor did not tell me this, I read my P & S, my seller has until July 20th to bring good title, and if they cant there is an extension provision that states. "Buyer must notify seller's Attorney of ay and all title objections ten days prior to closing date....." then it goes on to say seller will use good faith effort to fix title problem or provide fee title policy to buyer with time period allowed or during extension. this of course is their "special" addendum. The extension period provided in main body of p & s is 30 days paragraph 10 standard...seller elects to use resaonable efforts...and time for performance shall extend 30 days.....I am sure in some strange happening, that I could get my money back, but King.....I dont want to lose the house either, catch 22. I was throwing out how this is no longer an arms length transaction....

So no, under the contract, I cant just walk away nor do I want to, at least not yet. We cannot seem to find anything else and believe you me we are wiling to sacrifice, but I cannot make money I dont have appear....I want the house i have a signed p&s for!

Peter: It did not say Judge Long would be on vacation..it was strange as if something emergent happened and he has to take off, he is not sure when he will return and again likely decision wont be made the week of July 13th.

I do realize it is unlikely the Banks will give any of us first right of refusal on any of these properties ( I am not a RE Attorney, but...) as I believe the foreclosed person has to have a right to buy the property back as well and there has to be more than one bidder to essentially give the foreclosed person the "hope" of a bidding war and the obtaining equity on the note. My problem is these people dont even know this has happened.

Bottom line, I am holding out, I have nothing to lose unless and until I find a home other than the one I am in a deal with, and ask for my money back....which just hasnt happened yet.....

Tired, and running out of time......I am glad the stories will be told on Monday evening news, but I am not sure the stories will help...it will bring light though which I have to hope peeks someone higher ups interests.
Posted on: 11th Jul, 2009 05:52 am
Has anybody try contacting Boston Globe and see if they can run a story on this? I am surprised they haven't had a story on this mess in the state. or did I miss it? .. I am not sure how to reach the right department...
Posted on: 13th Jul, 2009 07:09 am
All of the attention in the world isn't going to get this resolved any sooner.

It needs the attention of a single person - the judge, who is already working on it.

Angry masses won't speed anything up.
Posted on: 13th Jul, 2009 09:21 am
SO if the judge comes back and says he is not going to reverse his decision we should all go quietly away and wait for whatever happens next? Sorry but my life has been impacted already and the lives of many others who don't even know they are not alone.

Squeaky wheels get the grease so the more people who know what is going on gives us a better chance of finding someone who can give us better direction.

If this judge had the power to turn our lives upside down in a few sentences then maybe there is someone else out there who can get things back on track.
Posted on: 13th Jul, 2009 11:32 am
Cheri - no one is forcing you to stay in the situation you are in. That is a decision you have made for you and your family.

All parties involved in our home (mortgage broker, realtor and lawyer) have told us to walk away (which we have) as this will not be resolved quickly or smoothly and the full ramifications of a decision in either way are still vastly unknown.
Posted on: 14th Jul, 2009 05:11 am
I wish I had the flexibility you have but you are right - it is my choice to wait it out.

At the very least, houses foreclosed on since the ruling should be happening in the correct way so eventually those houses will start to hit the market. We have an updated letter from the bank with the higher rate that is good for a couple months.

If nothing happens before then we will get another letter until we are priced out of the market again.
Posted on: 14th Jul, 2009 07:30 am
Disappointed in the Channel 7 story. It didn't really discuss what the court ruling was or explain what it has done title-wise to previous foreclosures, how it's affecting houses under purchase and sale agreements, etc. etc.

To read the story, go to whdh's website, then under Seen on 7, click on Real Deal.
Posted on: 14th Jul, 2009 08:31 am
If we could walk away happy we would, for most of us, if had found something better along the way, we would have walked!

Yes the news story was dissapointing, the real fall out was not discussed thoroughly at all.

I am waiting a call from my bank, we are supposed to close on Monday, I am sure the call will be to call off the deal.....I am hopeful some more houses will hit the market soon. I have exhuasted 8 towns!
Posted on: 14th Jul, 2009 08:44 am
Let's hope that what was put out there on Channel 7 stirs the pot a little and gets some attention brought onto the subject.

I also felt bad for the fellow who bought a house a year ago and now can't sell it for the same reason we can't buy one. I guess we were lucky to find out before we were put in his position.

This is a step in the right direction - publicity hopefully will bring a little pressure on folks in charge.
Posted on: 14th Jul, 2009 11:06 am
I bought a home at a foreclosure 2 years ago.
If they go back and find out that my house was not foreclosed on properly will I lose the house?
Posted on: 16th Jul, 2009 12:28 pm
Hi Phoenix:

Did you buy title insurance? If I understand things correctly - if you go to sell the house and there is a problem with your title then the insurance company should take care of it. I am not sure what is involved if you did not buy title insurance though.
Posted on: 16th Jul, 2009 03:42 pm
Hello all -

Just as an FYI - for anyone dealing with a Wells Fargo property...we were supposed to close on July 1st, got an extension until July 21st, but had no issue getting our entire deposit back (even before the extension ran out) when we found another property we liked (not bank owned, thank goodness). We worked directly with the seller agent, but did call someone at Wells Fargo directly to speed the process along...we're more than happy to provide contact info for her for anyone looking for a way to get their money back. Any P&S is definitely not iron clad right now given this situation.
Posted on: 18th Jul, 2009 09:34 pm
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