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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?
I too am stuck in the REO nightmare. We were supposed to close Friday and are now my husband, myself, and our one year old are living with my parents in their 2BR condo. I emailed Scott Smith and received the following reply:

"I'm sorry to hear of the chaos surrounding your present living arrangements. I can offer you the following information regarding the decision in the Ibanez/Larace matters which may offer some consolation. Judge Long is finishing up a major decision in another matter. That decision should go out by the end of this week and then he'll be devoting his full attention to the Ibanez/Larace cases. I can't place an exact time frame upon when the decision will issue, but I'd say we're talking about a few weeks in my best estimation, perhaps longer and perhaps sooner. If you'd like to check back in a week or two, feel free to do so. I may have more information at that time."

This appears to be the standard reply that was given to another member last week...
Posted on: 19th Aug, 2009 10:59 am
My fiancee and I just had our offer pulled from beneath our feet due to a messy title. Its particularly painful because by the time the issue is resolved, the first time home buyer's tax credit would likely have expired =(
Posted on: 19th Aug, 2009 02:04 pm
Hey Everyone! Here is the reply I got from Scott Smith on Wednesday.

Good Morning Peter,

Judge Long is still working on the Ibanez/ Larace decisions and I'm told that his decision on plaintiffs' motions to vacate will be the next decision to go out, however it may take some time. Perhaps several weeks, perhaps a little bit longer. It could come out sooner, but I don't want to offer any false hope at this point.

You may feel free to contact me at any time to get an update, but that's where things are at this moment. We have a rather light schedule this week in court so perhaps he'll make significant progress this week. Next week we are laden with trials, so I wouldn't expect much in the way of development next week.

Sincerely,

Scott
Scott A. Smith
Sessions Clerk to the Honorable Keith C. Long

[Phone number deleted as per forum rules. Thanks.]
Posted on: 21st Aug, 2009 03:22 am
DELAYS AGAIN!


Regrettably there's nothing new to report since last time. The judge is still working on another decision which has taken longer than anyone had anticipated. It should go out very soon and then Ibanez is next.
Posted on: 27th Aug, 2009 07:01 am
Hi Gmorin.

Your last post seems to contradict what Scott sent me last week. I have to admit I am getting really frustrated by this. I at least expected honest updates from Scott Smith. Now he seems to be saying that the work hasn't even started on the Ibanez decision. Could you post his entire email to you? Thanks! Peter
Posted on: 27th Aug, 2009 10:42 am
Hi Peter,

That was the whole email except for the Hello and his signature. I feel like we are just getting jerked around. It is extremely frustrating.
Posted on: 27th Aug, 2009 06:54 pm
Here is this weeks post from Scott Smith, I received this today.


Regrettably there is not much new to report. Judge Long is still working on a decision in another matter which should issue any day now. Once that decision goes out he will begin writing a draft of the Ibanez decision. It will likely take at least several more weeks, perhaps a bit longer. To be safe, I'd venture to guess that the decision may take up to a couple of months. I hope we are both pleasantly surprised, but in reality once he starts working on the decision it could still take some time.

He's actually moved this case to the top of his priority list. This will emphatically not apply in this case, but the judge still has some matters under advisement from two years ago, so this case is really jumping the queue if that's any consolation. The Chief Justice is patiently awaiting his decision too, as many of the judges here are seeing cases with the same issue and all are waiting to see how Judge Long will rule, so he is under internal pressure to get this one done too. Feel free to check back soon. Perhaps I'll have better news at that time. Hopefully in the next couple weeks, once he's begun to write the decision, I'll be able to give you a more substantive answer. Thank you.

Sincerely,

Scott

Scott A. Smith
Sessions Clerk to the Honorable Keith C. Long

[Phone number deleted as per forum rules. Thanks.]
Posted on: 02nd Sep, 2009 11:58 am
Hi All,
OOY, the Judge is really taking a while and I dont know how much better it makes me feel that he has taken two years to give opinions on other matters!?

I am now in the Short Sale waiting hell on another home. We asked for our money back on the "dream home" as they werent doing any good faith to clear title (ie try to find the document of assignment dated way back when...or being reforeclosure process....) if they had begun something we would have held on, but they are just sitting on the property waiting for the Judge to make his decision in some small hopes that the decision will not be appealed......take your big bucks and REFORECLOSE the houses!

Will email Scott next week to keep the pressure on!

Good luck to all!
Posted on: 02nd Sep, 2009 04:33 pm
I work on Foreclosed homes and we have come across a few of these where they have to turn around and re-foreclose and hopefully the sellers, bank that we represent, will end up with the home at Auction again... This is WAISTING THOUSANDS OF DOLLARS that is not necessary because the original owners will not be able to get back the home anyways and they know very well that the bank has legal ownership in the property... it's a waste of time on what they are doing and making companies suffer more in an already hard economy...
Posted on: 03rd Sep, 2009 01:12 pm
We finally closed on a home last week. It might be worth it for folks to look at Fannie Mae/Freddie Mac homes while this other thing settles out. After nearly a year we heard "clear title" and we received the title insurance certificate yesterday. I was still waiting for the other shoe to drop but the sale was done Friday.

Another note on Fannie Mae - they met our much lower bid (the highest bid we could offer) in less than a week.

The up side for us was the house we ended up with was heads above the one we lost to this land court mess. Better neighborhood, less to repair and we will be able to move in 2 weeks - as soon as we get the new furnace inspected.

We were offered 0 money down and the option of rolling the cost of the new furnace into the mortgage.

It is just another avenue folks may want to check into while waiting.

Good luck everyone.
Posted on: 03rd Sep, 2009 03:18 pm
I got a similar response from Scott Smith the other day.

Here is what he sent me:

Hello Peter,

Regrettably there is not much new to report. Judge Long is still working on a decision in another matter which should issue any day now. Once that decision goes out he will begin writing a draft of the Ibanez decision. It will likely take at least several more weeks, perhaps longer. Feel free to check back soon. Perhaps I'll have better news at that time. Thank you.

Sincerely,

Scott

Scott A. Smith
Sessions Clerk to the Honorable Keith C. Long
Land Court Department of the Trial Court
226 Causeway Street
Boston, MA 02114


I certainly hope that the decision doesn't take a "couple of months!" I am still trying to hold on to my deal on the little house in Gloucester. I have been watching the MLS daily, but can't find anything else that is in good enough shape and in my price range. Maybe the judge will surprise us and get this decision written sooner than Scott thinks. (but I doubt it!) Hope everyone has a nice Labor Day weekend!
Posted on: 05th Sep, 2009 04:45 am
dear people, move on. you're waiting for something that will never come and you're wasting your time. if it were meant to be, you'd have your homes by now.
Posted on: 08th Sep, 2009 12:38 pm
Dear guest,

Stuff it.

Thanks
Posted on: 10th Sep, 2009 12:13 pm
Dear Rebas,

No thanks, I really like pointing out how rediculous all of you are. It makes me feel better in my beautiful, non-forclosure home.

Regards,

Guest
Posted on: 10th Sep, 2009 12:57 pm
Guest,

Lets just point out how ridiculous I am. I ran into the same problem, the bank re-foreclosed on the home and I am back under contract 3 months later with a house that is worth $300,000 and I am only paying $200,000 when you probably paid 25% more for your home that is more than likely worth just as much as you paid for it.

Best Regards,
B-L
Posted on: 10th Sep, 2009 04:39 pm
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