- Real Estate
Do You Still Own Your Home After The Foreclosure Sale?
The issues of the required missing documents the banks need in order to prove ownership and foreclose have clouded the title of millions of properties in this country. Clear title and uncontested ownership rights are fundamental to property ownership in this country.
Being conservative, there are more than SIXTY FIVE MILLION HOMES that have clouded property titles throughout the country. A company called MERS, which stands for Mortgage Electronic Registration Systems, is a large "player" in these issues. MERS was created by the Banks as an electronic "database" to keep track of the mortgage transfers, without having to follow the requirements to record these transfers in the County Recorders Offices.
The laws are VERY specific and require that the note and mortgage must travel together at ALL TIMES. This never happened. If the note and mortgage do not travel together, they become what is called "bifurcated" and the mortgage obligation becomes "unsecured" permanently and can NEVER be joined together again!! The note is used as an "IOU" where the homeowner promises to pay X amount of dollars for X amount of years at X interest rate. The mortgage is used as collateral for the obligation of the note and “perfects” or secures the lien. If the mortgage is unsecured, the bank can sue the homeowner to collect a judgment, but they cannot foreclose and take the house as collateral. The homeowner also has the possibility to discharge the unsecured obligation through bankruptcy.
Furthermore, it is now widely known that the mortgage notes were not properly transferred into the securitized trust, and instead were pledged as collateral simultaneously to multiple pools, like children trading baseball cards on the playground.
If a judge allows a foreclosure to proceed based on false documentation, at any time the REAL HOLDER OF THE NOTE AND MORTGAGE could show up at ANY TIME and demand payment and foreclose on the property.
THE HOMEOWNER WOULD BE HELD LIABLE FOR THE DEBT ALL OVER AGAIN!!
***More importantly, when banks use false documents to wrongfully foreclose on homeowners and subsequently evict the homeowner, they are still the rightful owners of their houses, and can take legal action to regain title to their house and kick out the new “owner”. ***
A scenario of this exact situation is currently playing out in Massachusetts. In January 2011, the Massachusetts Supreme Court issued a ruling in the case US Bank Nat’l Association vs. Ibanez. The Supreme Court ruled that a bank cannot foreclose on a property until the bank is in possession of BOTH the note and mortgage, perfecting the chain of title AT THE TIME THE NOTICE OF DEFAULT IS FILED. When the paperwork was not recorded at the county recorder’s office, then the chain of title was not perfected, and it CANNOT be created after the fact. Many banks will issue a “blank assignment” to be filled in later if/when it is needed to foreclose. The Supreme Court also said that using a blank assignment is problematic. This case deals with a non suspecting homeowner who purchased a foreclosed property. The bank used fabricated documents to foreclose on the property, and the new homeowner purchased the house from the bank. When a bank uses forged documents to steal someone’s house, it cannot sell what it does not rightfully own to a new buyer. The house still belongs to the homeowner who was wrongfully foreclosed. The new homeowner will be left “high and dry”.
ARE YOU MAD YET?!
Homeowners should be more than angry. The banks have relied on each of us (lawyers and judges too) to be uninformed and ignorant about what has been happening. Banks are using fabricated documents to literally steal homes that they are not legally entitled to EVERY SINGLE DAY and getting paid several times over for doing so.
If a homeowner marched into a bank and demanded to cash a check that was made out to someone else, THEY WOULD BE PROMPTLY BROUGHT FOR A PERMANENT STAY AT THE GRAY BAR HOTEL…FOR A VERY LONG TIME.
YET THERE HAVE BEEN NO BANKERS JAILED FOR COMMITTING THESE ACTS OF F-R-A-U-D.
It is becoming more apparent with each day that passes, that there are two sets of rules and laws in this country, one for the banks and one for the rest of us.