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?
I'm not sure what you mean by "all set" - but the house will be able to be purchased after the foreclosure process has been completed. Once the foreclosure begins (on 7/30) it can take up to 3 months for it to be able to be sold. Because they are re-foreclosing, your agreement with them is probably null and void and anyone could purchase the home in the future.
Any chance that the judge can make a decision to possibly steamline the re-foreclosures? It's a given that the houses were originally lost and a process was in place to give the former owners every chance to make good on their commitment to the mortgage holder. Once the mortgage holder took the property as payment for the outstanding loan is where it seems to have started getting screwed up.
It seems as if there has to be some way to shorten the process the second time around.
We are slowly losing our edge as buyers. Bank interest rates are starting to rise (we, personally, have an extension thru the end of July for 4.25% and that is no longer offered as an option anywhere and there is no news on our house becoming available before that rate goes away for us)
The stimulus factor has a deadline of December 1, 2009 so that window will be closing while we wait to hear if any of our houses will become available in time to take advantage of the additional break.
So while we wait - more jobs are lost, more houses are foreclosed on and eventually a ton of re-foreclosed properties will start to become available.
I know the house we were waiting for had been vandalized at least once between the time it went on the market and the time we decided to buy it. I can only imagine what sort of shape it might be in now.
It seems as if there has to be some way to shorten the process the second time around.
We are slowly losing our edge as buyers. Bank interest rates are starting to rise (we, personally, have an extension thru the end of July for 4.25% and that is no longer offered as an option anywhere and there is no news on our house becoming available before that rate goes away for us)
The stimulus factor has a deadline of December 1, 2009 so that window will be closing while we wait to hear if any of our houses will become available in time to take advantage of the additional break.
So while we wait - more jobs are lost, more houses are foreclosed on and eventually a ton of re-foreclosed properties will start to become available.
I know the house we were waiting for had been vandalized at least once between the time it went on the market and the time we decided to buy it. I can only imagine what sort of shape it might be in now.
I highly doubt there's going to be any "streamlining" going on - I think that is part of the original problem...
So the properties will go through the process as if the first never happened? Auctions too? If that's the case then does anyone know where we can watch for the auction listings - maybe we will be able to get our houses cheaper than they were offered to us?
Yes, unless the judge decides otherwise the properties will go through the foreclosure process as if it hadn't happened before.
Cheri - don't get too excited. It also means that you may get yourself into a bidding war and you may have to be willing to pay more than you were originally offering. Let's hope that the judge will overturn his decision and we will not have to go through the foreclosure process again.
It would be interesting to find out where the auction listings will be - I would be curious to see if any of the dozens of houses we looked at, before we found the one we wanted, just to see the process any of our houses might be going through.
I agree with you about the whole Wells Fargo thing too. I went back through my emails on the process of that last house we thought we stood a chance at and I notice that they are asking pre approval on other houses that seem to be too good to be true for the money they are listed at. I think that I might put an envelope together for the Attorney General to check into.
I agree with you about the whole Wells Fargo thing too. I went back through my emails on the process of that last house we thought we stood a chance at and I notice that they are asking pre approval on other houses that seem to be too good to be true for the money they are listed at. I think that I might put an envelope together for the Attorney General to check into.
Sorry for the delay in posting about the interview - went well, hope it gets us somewhere.
As far as the auction listing, that goes back to the problem. Foreclosure sales must be publicly listed - there is a state reporter where they must be listed, as well as a newspaper that's well read in the area I believe. There are all sorts of notice rules that need to be followed. The original cause of all our problems are the notice rules, since the people who actually foreclosed weren't on the listing.
You'd have to keep your eyes open for the listing. Hopefully these banks will realize they have sales set to go and rather than re-shop them, sell them to us ASAP. If they don't sell before the credit expires, prices are likely only going to drop after the loss of the 8k most people are trying to take advantage of.
Heard from the Gov's office, basic answer was - tough luck, we have laws for a reason and you're better off that they are being enforced (even though no one wants this one pushed in this case). Plus we're "better off" that this gets settled so we can sell some day instead of dealing with a title issue. Expect they didn't include the fact that we could all probably get the title quieted in the future had we actually been able to purchase and get in there.
Keep an eye on the paper, and any activity at the Registry of Deeds (you can check online).
I very highly doubt this will settle itself quickly. We're pretty much all gonna take this on the chin. Only in MA.
As far as the auction listing, that goes back to the problem. Foreclosure sales must be publicly listed - there is a state reporter where they must be listed, as well as a newspaper that's well read in the area I believe. There are all sorts of notice rules that need to be followed. The original cause of all our problems are the notice rules, since the people who actually foreclosed weren't on the listing.
You'd have to keep your eyes open for the listing. Hopefully these banks will realize they have sales set to go and rather than re-shop them, sell them to us ASAP. If they don't sell before the credit expires, prices are likely only going to drop after the loss of the 8k most people are trying to take advantage of.
Heard from the Gov's office, basic answer was - tough luck, we have laws for a reason and you're better off that they are being enforced (even though no one wants this one pushed in this case). Plus we're "better off" that this gets settled so we can sell some day instead of dealing with a title issue. Expect they didn't include the fact that we could all probably get the title quieted in the future had we actually been able to purchase and get in there.
Keep an eye on the paper, and any activity at the Registry of Deeds (you can check online).
I very highly doubt this will settle itself quickly. We're pretty much all gonna take this on the chin. Only in MA.
is the Help Me Hank piece still scheduled for Monday? Will it be on the 6pm or 11pm news?
Hello everyone -
I contaced WHDH to see when the story will air. here is the response I receieved:
The story will be airing on Monday July 13th. I've been in contact with the land court. My understanding is that arguments from all sides are due on June 29th and then the judge can take as much time as he wants to deliberate on the decision. Lawyers I have talked to think whatever decision is made will be appealed. It doesn't look like there is a resolution coming anytime soon.
So Monday July 13th in the 10pm and 11pm news.
Nothing sounds favorable. I guess we just wait to see what the decision is hopefully by end of next week!
I contaced WHDH to see when the story will air. here is the response I receieved:
The story will be airing on Monday July 13th. I've been in contact with the land court. My understanding is that arguments from all sides are due on June 29th and then the judge can take as much time as he wants to deliberate on the decision. Lawyers I have talked to think whatever decision is made will be appealed. It doesn't look like there is a resolution coming anytime soon.
So Monday July 13th in the 10pm and 11pm news.
Nothing sounds favorable. I guess we just wait to see what the decision is hopefully by end of next week!
gmorin, isn't that opposite from what the Judge's clerk told you? (That the decision would be made shortly after the 29th's deadline...)
Disappointed that "Help me Hank" doesn't seem to want to generate any word of mouth until the situation has been resolved.
Disappointed that "Help me Hank" doesn't seem to want to generate any word of mouth until the situation has been resolved.
yes, the clerk clearly stated in his email that the judge understands how important this case is and will look to make a decision quickly. But honestly who knows at this point. I am going to email the clerk again either Monday or Tuesday to see where they're at...I'll let you know
I'm disappointed too with Help me Hank? Doesn't look like they want to get involved.
I'm disappointed too with Help me Hank? Doesn't look like they want to get involved.
I am really hoping that the "owners" of "our" houses understand that the longer they wait to re-foreclose the longer they are going to have to pay to maintain them. I hope they have a little more information than we seem able to get so they can understand that while they wait to sell the houses, that were already sold once to us, there will be more foreclosed houses (hopefully done right) that might become available soon and we may find one of those attractive simply because we can actually buy it.
I talked to a girl who runs a title search company in Missouri - the problem is nationwide. Maybe one of those other states will find the magic wand to loosen things up before we get too discouraged.
I talked to a girl who runs a title search company in Missouri - the problem is nationwide. Maybe one of those other states will find the magic wand to loosen things up before we get too discouraged.
My bank extended my P&S again; they're hopeful that this is going to be resolved very quickly and, I assume, wouldn't be stringing me along if they didn't think they were in a good position. I'm concerned that Help Me Hank was so dismissive. Doesn't seem like they really want to help; just that they want to look like they resolved it when an answer is imminent.
Has anyone here who still has a current Purchase and Sales Agreement on one of these foreclosures spoken to a lawyer regarding the Chapter 93A Consumer protection statute? (see my previous post). I have tried to contact my closing lawyer, but since he is actually working for the bank, he hasn't been forthcoming. Does anyone know of a decent Real Estate lawyer on the North Shore? Hopefully Judge Long will overturn his previous decision, but if he doesn't, I want to know what my options are. Thanks.