Monday, March 26, 2012

Chain of Title issues may be your leverage to get a new loan and stay in your home

 Here is another method to consider when dealing with the major banks and trying to get a loan modification or a short sale.  This may just give you the leverage you need to get a serious negotiator to step to the front and start coming to a compromise.  There seems to be a lot of mortgages that have been handled inappropriately and that were not properly delivered to the pooling trusts. 

Things could get very interesting. 

Sue Your Lender for Chain of Title

Your mortgage servicer may not have the legal right to foreclose on you. Whenever you do choose to sell your home, there assuredly will be a cloud on your title, preventing you from selling. If your title or deed was not transferred correctly from investor to investor as your mortgage was sold and re-sold, they have broken the chain of title and their foreclosure action is illegal. Many homeowners are choosing this litigation as a strategy to save their homes, and force the reduction of principal and interest rate on their mortgage; and they're succeeding with spectacular results depending on what state you’re in. This is at the heart of the Foreclosuregate and Robosigner scandal exposed in October of 2010.

It's too early in the history of this strategy to predict what any given judge will decide as a remedy for a broken chain of title, or corrupt title, but it is clear that the better prepared the homeowner is, and the more aggressive their attorney, the more you will gain. If your lender can't provide the title or deed to your property, you probably win big time. The likelihood of broken chain of title is extremely high if you bought your home since the year 2000. We have seen corrupt title cases as far back as 1994.

This is a spectacular strategy to force mortgage servicers to recognize Fair Market Value calculations, to lower the loan principal and interest rate on your mortgage to a Fair Market Value and competitive interest rate. It is not suitable to argue in court for the ‘Free house’ that you undoubtedly deserve. A successful broken chain of title suit would result in a new mortgage, as opposed to a mortgage modification, which is a re-writing of the terms of your current mortgage. Basically, it holds the mortgage servicer and mortgage investor accountable for the incredible loss in value to your property in the last few years as well as sloppy title compliance in their rush to get you into a house and sell your loan to investors. This is an especially suitable strategy for a homeowner who doesn’t qualify, or isn’t satisfied with, a mortgage modification.

You need the right attitude, and probably some funds available to you for a broken chain of title suit. You need a real ‘fire in your belly.’ You can’t expect much of a warm reception from an accomplished attorney without some retainer funds to pay for corrupt title prosecution. Perry Mason was not cheap – or idle.

1 comment:

  1. Unfortunately, what we can see in western Europe and US has nothing to do with capitalism.
    Among other deformations,
    huge amount of activities which are in capitalism performed by entrepreneurs are carried out by governments.
    If we ask "is capitalism in crisis" in this situation, this question is meaningless.

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