FORECLOSURES - More on "Show Me The Note"

One county, in NC (Guilford) is already suing many of the major lenders for destroying their land records that have been in place for 300 years because they have no clue which titles are clear and which are not!

These are important!

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More On "Show Me The Note!"

The following is the abstract of a recent article by law professors Bradley T. Borden & David J. Reiss, and law student William KeAupuni Akina, all of Brooklyn Law School, published in a recent issue ofWestlaw Journal Bank & Lender Liability (June 3, 2013):

• News outlets and foreclosure defense blogs have focused attention on the defense commonly referred to as "show me the note." This defense seeks to forestall or prevent foreclosure by requiring the foreclosing party to produce the mortgage and the associated promissory note as proof of its right to initiate foreclosure.
  
  The defense arose in two recent state supreme-court cases and is also being raised in lower courts throughout the country. It is not only important to individuals facing foreclosure but also for the mortgage industry and investors in mortgage-backed securities.
  
  In the aggregate, the body of law that develops as a result of the foreclosure epidemic will probably shape mortgage law for a long time to come.
  
  Courts across the country seemingly interpret the validity of the "show me the note" defense incongruously. Indeed, states appear to be divided on its application. However, an analysis of the situations in which this defense is raised provides a framework that can help consumers and the mortgage industry to better predict how individual states will rule on this issue and can help courts as they continue to grapple with this matter.

For the entire article, see Show Me the Note!

posted by Home Equity Theft Reporter at 4:04 AM links to this post 

Toxic Land Titles & Title Insurance

The following is the abstract of a recent article by Molly Rose Goodman, Suffolk University Law School published in a recent issue of Real Estate Law Journal:

• By failing to properly transfer ownership of loans and mortgages, recording fraudulent documents, and performing unlawful foreclosures, financial institutions and law firms have generated property titles that range from defective to toxic.
  
  Those actions evince a systemic failure to comply with longstanding principles of real property law and regulations governing financial transactions. Title companies participated in title services and issued title insurance policies throughout the housing boom and although they did not directly cause toxic titles, many title insurers have ultimately assumed the risk for the bad practices that became the industry norms in the last decade.
  
  In this article, I will discuss how title insurers have exposed themselves to liability for toxic titles.

For the entire article, see The Buck Stops Here: Toxic Titles and Title Insurance.

posted by Home Equity Theft Reporter at 4:02 AM links to this post