- Real Estate
Why A Short Sale Is A Bad Idea To Avoid Foreclosure
JP Morgan Chase has had their fair share of "publicity" over the past week after losing BILLIONS of dollars (With losses continuing to mount as we speak) on a bad "bet" using our own taxpayer money.
Unfortunately, what happened to an unsuspecting buyer of a foreclosed property in Kansas City Missouri, is the rule rather than the exception in regards to how foreclosures are handled by the banks. THIS PARTICULAR HOMEOWNER PAID FOR THE HOME WITH CASH.
And the culprit is none other than JP MORGAN CHASE...
Needless to say, this example was just a little more than a "screw up". The "Bank" signed off on the short sale and still proceeded with the foreclosure and eviction process.
This homeowner purchased the house from a short sale in 2010. JPMorgan conducted the short sale and signed off on the satisfaction of the prior mortgage. Within eight weeks, the bank changed the locks on the house and removed the new homeowners belongings.
JPMorgan had hired a company called "Safeguard Properties" to clean out or "trash out" the property, even though there were “No Trespassing” signs on the garage. The homeowner lost all important documents as well as family heirlooms, essentially everything.
The company hired to do the trash out could not "find" the personal belongings, and JP Morgan has denied any wrongdoing. YEAH RIGHT.
The company also changed the locks on the property, forcing the homeowner to "break in" to the house, which was paid for IN CASH.
The homeowner is suing JP Morgan for a wrongful foreclosure and eviction, and damages in exceess of $1.5 million. JPMorgan is also being accused of theft, trespassing and reckless indifference
The documents recorded against the property located in the County Recorders Office demonstrate that on Sept. 9, 2011, the former homeowners transferred the house via a short sale. Just 12 days later, JP Morgan signed off on the deal, releasing the mortgage on the property through a satisfaction of mortgage. And then just two short months later, JP Morgan had hired Safeguard to "preserve/winterize" the property and remove all of the personal belongings, which defies all logic.
Of course, JP Morgan is claiming that this was a little "paperwork problem". Really?!?. There is NO way that a "paperwork problem" would result in a homeowner being thrown out onto the street from a house that he paid for in cash!!
JP Morgan also has no comment how it plans to settle the dispute. Now why is that?!?
And Safeguard Properties has referred all questions and comments to JP Morgan, washing their hands of this "little problem".
This is a prime example of the multitude of problems with purchasing a property utilizing a short sale. Even more disturbing is the fact that this homeowner paid for the home with cash, and likely does not have any title insurance to clear up this "paperwork problem", which will likely cost thousands of dollars to clear up with an action to Quiet Title against the "Bank".
Or an even worse case scenario is that the previous homeowners are still the legal owners of the property, if the satisfaction of mortgage is found to also be invalid.
WHERE ARE THE HANDCUFFS??