Calling into question the ownership of foreclosed homes in Massachusetts is raising havoc among buyers and sellers, and may negatively affect many who deal with distressed properties.
There are ramifications when and if foreclosures are deemed invalid because ownership of the mortgages was not clear at the time of the foreclosures.
We may begin to see lenders delaying sales of foreclosed properties due to a fear that they could be voided later, and title companies beginning to balk at insuring these properties.
"At issue is proof of ownership at the time of a foreclosure sale. During the housing boom, millions of mortgages were bundled into bonds and sold to investors, a process that resulted in lengthy and twisted paper trails that can obscure ownership. Many lenders believed they could complete foreclosure transactions and later produce formal proof they held the mortgage." - Boston.com 10/9/09
There are ramifications when and if foreclosures are deemed invalid because ownership of the mortgages was not clear at the time of the foreclosures.
We may begin to see lenders delaying sales of foreclosed properties due to a fear that they could be voided later, and title companies beginning to balk at insuring these properties.
"At issue is proof of ownership at the time of a foreclosure sale. During the housing boom, millions of mortgages were bundled into bonds and sold to investors, a process that resulted in lengthy and twisted paper trails that can obscure ownership. Many lenders believed they could complete foreclosure transactions and later produce formal proof they held the mortgage." - Boston.com 10/9/09
To read the entire article:
http://tinyurl.com/yfa85gp
No comments:
Post a Comment