Posted on 01/12/2011 1:36:43 PM PST by Kartographer
§ 55-59.6. Foreclosure; civil penalty for fraud; civil action.
A. Any person who (i) knowingly makes, uses, or causes to be made or used a false or fraudulent record, document, or statement or (ii) knowingly swears or affirms falsely to any matter, in support of any foreclosure upon property under this chapter shall be liable for a civil penalty of $5,000 for each violation.
(Excerpt) Read more at market-ticker.org ...
Fix it or don't foreclose.
Now here's the problem the banks have with this - If the originator is bankrupt and there were no other assignments, who do you get to assign the note?
Ping
§ 55-59.5. Sale by trustee; additional requirements; nominee cannot request sale.
A. On or after July 1, 2011, if a deed of trust or mortgage has been assigned by the original grantee or mortgagee, the trustee, or any substitute trustee, under any deed of trust or mortgage shall not proceed with any sale of the property unless (i) all assignments of the deed of trust or mortgage have been duly recorded with the land records of the locality in which the property is located and (ii) the person who asserts that he is the holder of the obligation secured by the deed of trust or mortgage can directly trace his interest through the duly recorded assignments to the original grantee or mortgagee.
B. If all assignments of the deed of trust or mortgage have not been duly recorded with the land records of the locality in which the property is located, the trustee, or any substitute trustee, may proceed with the sale of the property conveyed to him by the deed of trust or mortgage upon (i) the recordation of any assignments necessary to trace the interest of the person who asserts that he is the holder of the obligation secured by the deed of trust or mortgage to the original grantee or mortgagee or, if an intervening assignment cannot be recorded because the assignee no longer exists, the provision of an affidavit by the party secured to the trustee, or any substitute trustee, attesting under penalty of perjury that the person is the party secured under the deed of trust, and (ii) the payment of all fees, taxes, and other costs applicable to the recording of the assignments. The person who asserts that he is the holder of the obligation secured by the deed of trust or mortgage is solely responsible for paying all fees, taxes, and other costs required in clause (ii).
C. A nominee of a grantee, mortgagee, or beneficiary for a deed of trust or mortgage has no authority to request that the trustee, or any substitute trustee, proceed with any sale of the property and the trustee, or any substitute trustee, shall not proceed with any such sale upon the request of the nominee. As used in this section, “nominee” means a person who is designated in the deed of trust or mortgage, or who is subsequently designated to act on behalf of the grantee, mortgagee, or beneficiary. The term “nominee” does not include an agent or other fiduciary.
Am I confused, or isn’t all this stuff already fraudulent and illegal?
Let's wait and see it it's actually enforced. Better yet, let's make sure that it's enforced.
I would say that YES it was illegal before if not it sure as hell should have been!
The issue all along has been “inability” to transfer “clear title” in the properties due to deficient paper trail.
There is NO Quick-Fix for this.
I’m still confused. Does this mean that the bank(s) cannot foreclose and evict the nonpaying resident? Or does it mean the bank cannot resell after a foreclosure until the provenance of the deed is sorted out?
The banks can still sell with a “Quit Claim Deed” (poor option) or go back and cure the paper trail faults, case by case.
It is going to be difficult to fix this, because the process for conveyance of title is somewhat different from state to state.
That is the problem. No simple fix will cure all the faults.
This will make a number of lawyers a good living for some time to come, in my opinion.
What a mess.
Can’t evict without the deed.
The problem is not forclosure, but conveyance of title.
That said there are some issues about bank compliance with state law and the forclosure process. I doubt this will prevent non-paying purchasers from being evicted, unless the cost of “curing” the paperwork is more expensive in legal cost than the property is worth. That is possible. In that case, it is anybody’s guess what will happen with the ownership of the property.
ONLY $5000.00?!!!!!
So pay 5000 and use fake docs.
With all the transfers that were made without paying the fees to the local counties is going to add up to a lot of money when one considers how often they were sold.
Could result in a significant amount of revenue to counties in high foreclosure areas.
it simply means fraud can not be used to support a forclosure.
No real documents, no foreclosure.
So seeing how this issue effects the vast majority of mortgages how much can they afford to spend “curing” the paperwork bfore they go bankrupt?
If you are not behind and you need to sell your house and want the deed ‘unclouded’ so you can sell how long should you have to wait for the various enities to get your ‘cure’ and if they don’t provide the cure in a reasonable amount of time wouldn’t it be exceptable for you to push a quick claim so you can sell your home?
Simple, If the BANKSTERS cannot document a clear paper trail where all fees,recordings,conveyances,.. were done at the proper time, AS CURRENT LAW STIPULATES CLEARLY, They have NO RIGHT TO The PROPERTY and the mortgage becomes instantly an Unsecured Loan, which can be discharged in Bankruptcy in most states, and in most States your primary Residence is Excluded. The Banks Go Bankrupt and Hopefully Prison for their Fraud
"recordation"?
If they had tried harder, they could have made this a LONG sentence.
MERS was specifically created to avoid paying those fees.
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