Landmark Foreclosure Case in Massachusetts :
One in 35 homes in Western Michigan are expected
to be foreclosed upon in 2011. So the rate and number
of foreclosures this year is going to be huge and massive,
especially since banks have had to delay foreclosures due
to problems in showing proof of title.
Through various lawsuits involving the “right to foreclose,”
it’s been shown that banks have been very sloppy in assigning
mortgages correctly. Courts, attorneys and judges like in the
State of Massachusetts are finally understanding the
securitization of mortgages and ruling in favor of foreclosed
homeowners since many notes (mortgages) were not secured
correctly…the banks in their haste to sell notes circumvented
procedures required to legally protect the chain of title.
We are asked by homeowners in foreclosure if they
need an attorney. Our response is usually, “Yes,” due
to this issue alone. Attorneys bring clout and
can easily circumvent the servicing departments
and go directly to the banks’ legal departments.
Key decisions and authority is at this level when
negotiating loan modifications and settlements.
Sure some homeowners can obtain loan modifications
on their own from their lenders, but our experience shows
that most are not lucky enough to obtain loan modfications
on their own for numerous reasons. Bottom line is that banks
do not like to lose a dime and often use tactics to waste valuable
time needed to save a home from foreclosure.
There is also the question of broken or clouded title, and this
can be complicated and messy and as I said is only now being
addressed through State courts with a lot of “legaleeze.” All
investors of foreclosures and homeowners in foreclosure need
to be wary of the evolving court decisions and rulings. Many
homeowners may have unsecured mortgages. In theory,
homeowners could possibly get rid of mortgage debt through
bankruptcy or through quiet title and as a result own their
home free and clear. On the otherhand, an investor could
lose their investment by having to give back the foreclosed
home to the previous owner. Of course, this will probably
require a legal “fight.”
When hiring an attorney it is important to know their specialty.
Not all attorneys understand foreclosure. Almost all are willing
to do a loan modification if one is 1 to 3 months behind in
mortgage payments, but if one doesn’t fit this mold
rarely is anything done especially if not a student in
the arena of foreclosure. Foreclosures also require
a lot of time and energy and may not be that profitable
for an attorney. I do encourage homeowners to set-up
an escrow account to put away mortgage payments
if one wants to save their home and if their mortgage
company is no longer accepting payments. This way when a
settlement is reached, the homeowner will have some
money to bring to the “table.” Remember, banks only understand
money!
Call Foreclosure Prevention Institute today for attorney referrals
or to answer any nagging question regarding foreclosure. Foreclosure
Prevention Institute’s hotline is 1.800.826.1929. Talk to a “live” person.
Dave Brigle, Managing Member
Foreclosure Prevention Institute
271 Viking Dr
Battle Creek, MI 49017
1.800.826.1929
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