Thursday, June 30, 2011

When the foreclosure goes wrong.

According to the Oregonian Story on June 29th 2011, a Vernonia woman who fell behind on her mortgage payments, was foreclosed on December 2010.  The first lien holder put the home up for auction and the 2nd lien holder purchased it to protect their interest in the debt collection.  However, the owner wasn't moving out.  She hired an attorney and what they discovered was the first lien holder never had the right to foreclose.  They actually never had a recorded deed of trust. 

Something has been occurring in our industry, where lenders will sell the loans to other banks, and then never officially record the deed transfer in a county record.  They have developed an electronic system to keep track of these transfers.  It's called MERS.  It seemed to be a fine system for them to keep track, but as of late, investigators are uncovering a sloppy mess of disorganization.  The original notes and deeds have been getting lost.  And now, when challenged, if a bank that actually foreclosed on a property, never was truly in possession of the original trust deed of the property, they may have not had the right to foreclose.

As in the case with the Vernonia woman.  A judge just ruled that the bank didn't have the right to take back her house.  But they sold it?  Good thing they didn't sell it to another couple who was trying to move in...  No one knows what is going to happen next.

The editor's note:
Something has to be done to control the banks. This is most important.  However, does a person who defaults on the obligation have the right to have their home back too?  NO.  You don't pay, you cannot stay.  It's that simple.  Do we, as US citizens, let murderers out on on the streets, just because someone accidentally tampered with the evidence?  NO. oh wait...  yes we do.  Good luck fixing this one America.

http://mobile.oregonlive.com/advorg/db_/contentdetail.htm?contentguid=yljDufJC&full=true#display

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