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?
Does anyone have any information re: this change?
Hi BL
Why did you not go to auction to try and purchase it? Anyway, it is my understanding that if the bank purchased it back it will take approx. 30 days to back to market....anyone know anything more definitive?
Why did you not go to auction to try and purchase it? Anyway, it is my understanding that if the bank purchased it back it will take approx. 30 days to back to market....anyone know anything more definitive?
If your purchase agreement has been rescinded please contact me. I buy property at auction and will help you purchase or I may have purchased the home you were interested in.
If you are still interested in that home, I would contact the Bank and let them know that you are still interested in it immediately. Also be sure they realize that you had an agreement on it already! Let us know what happens. Hopefully they will honor the previous agreement you had! Peter
Yeah, i am hoping they honor the same price i was under agreement with. I did attend the auction but did not bid becuase of the risk, to be a qualified bidder you need to have $10,000 dollars and the rest needs to given in 30 days. if you can close in 30 days you lose your $10,000 dollars this becomes difficult when you dont have keys to the house to do an appraisal. I resubmitted my same offer to the bank today i will let you guys know what happens!
FYI on my story: the bank went back and re-did the paperwork on the condo and cleared the title. However, once the title was cleared and I was able to close, the bank reneged on the P&S and took the property back. I've just waited four months and lost thousands of dollars because the bank decided they wanted to put it back on the market. I have no recourse. I don't get how the bank can disregard a signed contract but apparently they can, according to my attorney. So beware -- even if you wait around and it looks like the closing could happen, the banks will eff you over and they can get away with it due to all the foreclosure laws that favor them.
Good luck all! I hope your endings are happier than mine.
Good luck all! I hope your endings are happier than mine.
How can the title to the condo be cleared? I thought any foreclosures affected by the case were frozen and couldn't get title insurance. How can the condo be sold before the judge has made a decision?
Many of the lenders are reforeclosing rather than wait for Long to make a decision.
Oh and so it goes huh, Stressed, I am sorry to hear about that, we have all been so patient and for what, for the Banks to be protected yet again.
We still havent had the "dream home" pulled yet, checking the mail box everyday....we have been informed by an "insider" that our house was pulled back to be reforeclosed in early July, but we have not seen it posted for auction yet....more waiting...we put another offer on a home (I think I wrote that a while back) of course short sale, so we wont have any answer until August 10, EARLIEST...more waiting....and here I am a cash buyer trying to stimulate the economy a little bit.....yet hands are tied. I am going to email Scott tomorrow to see if Judge Long has made any movement...
Stressed and all the others, try to keep your heads up...I know its hard!
We still havent had the "dream home" pulled yet, checking the mail box everyday....we have been informed by an "insider" that our house was pulled back to be reforeclosed in early July, but we have not seen it posted for auction yet....more waiting...we put another offer on a home (I think I wrote that a while back) of course short sale, so we wont have any answer until August 10, EARLIEST...more waiting....and here I am a cash buyer trying to stimulate the economy a little bit.....yet hands are tied. I am going to email Scott tomorrow to see if Judge Long has made any movement...
Stressed and all the others, try to keep your heads up...I know its hard!
stressed - What bank are you dealing with, did you try to submit a offer for the same purchase price you where under agreement with.
FYI - If the bank buys the house back at auction during the re-foreclosure process, it takes 3 - 4 weeks to finish the foreclosure process.
Contacted Scott Smith again.....this was part of his response:
I was talking to Judge Long yesterday afternoon about these cases. It appears from speaking to him that the Ibanez/ Larace decision will be the next decision to go out, though it may take a few weeks, perhaps slightly longer. Judge Long is anxious to issue a decision. He has been sifting through all the filings and I believe that as soon as next week he may begin writing his decision. I don't want to give you any false time frame. It's an involved decision, so it could take a couple weeks or it could take a month or so, but we appear to be close.
Check back toward the end of next week and I may have more info. As you said, either way it goes, it is likely to be appealed, but we'll cross that bridge when we come to it. Hang in there.
I think Scott is a sincere fellow...this is a difficult decision to unravel...I hope he can figure out a way to write the decision so that neither party feels the need to appeal....
Good luck to all!
we are still waiting to hear on our offer on the 2nd house (at $50K more) hopefully next week!
I was talking to Judge Long yesterday afternoon about these cases. It appears from speaking to him that the Ibanez/ Larace decision will be the next decision to go out, though it may take a few weeks, perhaps slightly longer. Judge Long is anxious to issue a decision. He has been sifting through all the filings and I believe that as soon as next week he may begin writing his decision. I don't want to give you any false time frame. It's an involved decision, so it could take a couple weeks or it could take a month or so, but we appear to be close.
Check back toward the end of next week and I may have more info. As you said, either way it goes, it is likely to be appealed, but we'll cross that bridge when we come to it. Hang in there.
I think Scott is a sincere fellow...this is a difficult decision to unravel...I hope he can figure out a way to write the decision so that neither party feels the need to appeal....
Good luck to all!
we are still waiting to hear on our offer on the 2nd house (at $50K more) hopefully next week!
Thanks BL, for the update. At least things seem to be moving along, slowly to be sure. Good Luck on your new house. I'm still desperately trying to hold on to "my" foreclosure. Peter
Hi,
It is encouraging that they are working on it, but worries that it could still take a month and that it could be appealed... Banks sensed it advance, thats why may be they start re-foreclosing the properties...
Now, the house I had under agreement with was taken away from me couple weeks back for re-foreclosure... When i contacted the bank the other day, she mentioned if I am willing to wait, they would it back under agreement and may take 2 months or more... am wondering could they do that? what if the house get sold on auction? also, would it take more than 3 moths... I have invested so much time and money on the house before learnig i cannot close on it.. thus i think its still worth waiting for it if it comes through clean... any suggestions? also, would the title be clean once they re-foreclose?
thanks.
It is encouraging that they are working on it, but worries that it could still take a month and that it could be appealed... Banks sensed it advance, thats why may be they start re-foreclosing the properties...
Now, the house I had under agreement with was taken away from me couple weeks back for re-foreclosure... When i contacted the bank the other day, she mentioned if I am willing to wait, they would it back under agreement and may take 2 months or more... am wondering could they do that? what if the house get sold on auction? also, would it take more than 3 moths... I have invested so much time and money on the house before learnig i cannot close on it.. thus i think its still worth waiting for it if it comes through clean... any suggestions? also, would the title be clean once they re-foreclose?
thanks.
Peter - Thanks, i wish you the best of luck. The re-foreclosre process should be all set in the next few weeks i will let you know if the bank accepts my offer for the same purchase price, i am dealing with Wells Fargo.
Dream Home - The entire process will take 90 days to complete, My re-foreclsoure is about 2 weeks from being done. I would suggest waiting, you will see the house in your local newspaper (3) times before the auction date, and the bank usally has a high reserve on the house (typically what was owed) investors are looking to make a quick profit not invest in something that they have to hold on to.
Go to the auction, it will be held on the property.. it sucks seeing it trust me i was extremly nervous someone was going to buy it but they didnt becuase the reserve was to high. If you buy the house at auction it is extremly risky as there may be liens on the property that the bank will NOT pay for and you have to close in 30 days or you lose your 5 or 10k deposit. once the bank buys it back the title will be clear.
Let me know if you have any questions.
Dream Home - The entire process will take 90 days to complete, My re-foreclsoure is about 2 weeks from being done. I would suggest waiting, you will see the house in your local newspaper (3) times before the auction date, and the bank usally has a high reserve on the house (typically what was owed) investors are looking to make a quick profit not invest in something that they have to hold on to.
Go to the auction, it will be held on the property.. it sucks seeing it trust me i was extremly nervous someone was going to buy it but they didnt becuase the reserve was to high. If you buy the house at auction it is extremly risky as there may be liens on the property that the bank will NOT pay for and you have to close in 30 days or you lose your 5 or 10k deposit. once the bank buys it back the title will be clear.
Let me know if you have any questions.
Thank you BL for you inputs...
I plan to goto auction when it comes. In my case, I think i have fair idea on the title, as my attorney had done a run on the title and explained to me what are all wrong.. there 2-3 things I would need to clear, but thats fixeable according to my attorney.. nothing else came up during title check. I had done an inspection on this house (water test, well test, radon test etc was all done). There are some major things to fix, but have a fair amount of idea what it takes... and had got some concession from the bank to fix some of them..
so I was thinking if I get it at good price, buying at auction won't be risky.. but u never know. I also heard they normally set the auction price high, what they are owed.. so may not have any luck during auction. .
it is not on newspapers yet.. am watching...
I plan to goto auction when it comes. In my case, I think i have fair idea on the title, as my attorney had done a run on the title and explained to me what are all wrong.. there 2-3 things I would need to clear, but thats fixeable according to my attorney.. nothing else came up during title check. I had done an inspection on this house (water test, well test, radon test etc was all done). There are some major things to fix, but have a fair amount of idea what it takes... and had got some concession from the bank to fix some of them..
so I was thinking if I get it at good price, buying at auction won't be risky.. but u never know. I also heard they normally set the auction price high, what they are owed.. so may not have any luck during auction. .
it is not on newspapers yet.. am watching...