Skip to comments.Think you will own your house someday? Think again. How to check your chain of title + Video Video
Posted on 05/17/2014 6:55:58 AM PDT by Opinionatedtoday
Imagine pulling up to your driveway with your kids laughing in the backseat, having come home from a baseball game, to see a foreclosure notice tacked on your front door. Maybe all of your belongings have been tossed out onto the street. You are in shock. It doesnt make sense. There must be a mistake. Why is the bank taking your house? Your home was your security, your retirement. It was the American dream. You had played by the rules. Its where your children have been growing up. Now, incredibly, suddenly, without warning, your entire world has been ripped apart, shattered.
Despite having never missed a mortgage payment and even paying early, the bank is coming to take away your home. They are coming to throw you out onto the street. Panic, disbeliefa tidal wave of emotions nearly knock you over as your heart beats faster and faster. The walls start closing in around you. You cannot breathe. The clock is ticking. Why is the bank coming to take away your house? You did everything you were told to do. Where will your children sleep in a few weeks from now?
Think this cant be you? Oh no, think again. This nightmare has been occurring across the country for years. As the Wall Street Journals Alan Zibel reported, bank files show that more foreclosure errors are happening than regulators have reported to the public.
As previously exclusively reported, this fate could be awaiting millions of more Americans because of a bankruptcy that is happening right now in Judge Martin Glenns U. S. Bankruptcy Court, in the Southern District of New York where 51 residential mortgage companies have simultaneously gone bankrupt.
Is your house owned by any of these bankrupt companies?
(Excerpt) Read more at marinkapeschmann.com ...
All I have to do is pay the local shakedown/protection racket their money once a year.
They didn’t have title insurance? Every mortgage company requires it. How can you not have title insurance??
Isn’t this what a title search is for?
Same here. BTW, that local shakedown racket here is costing a little over $300 a month. What are they shaking you down for?
I don’t put much stock in this article. Title insurance like you mention is overlooked in the article because it does not fit the narrative.
And nobody is going to come home surprised to find their furniture and belongings on the street. The sheriff gives you plenty of notice and they only put you out on the street, not your belongings.
Lenders typically don’t require a title policy that covers the owner, just the lender. Still, you’d have to be an idiot to buy real estate without paying a little extra for an owner’s title policy.
It sounds like these people who've lost their homes did have some warning - their payments went up. Also, they apparently had some reason to contact the mortgage company because the one lady said she could never get any help because the people she was talking to were in India - help for what?
Also, tying in MERS doesn't make sense to me either. Thanks to MERS, I can check all documents online.
When I paid off my mortgage a few years ago, I found out you never really own your home. I didn’t receive a tax bill from the county at the end of the year and assumed the mortgage company had paid that year’s tax from escrow. Apparently, the county continued to send the tax statement to the mortgage company and they ignored it.
In January of the following year I received my first letter from the county tax office and it stated that if I didn’t pay my tax, plus late penalty, by the end of the month, the County Sheriff would hold an auction and auction my home for the taxes owed.
Of course, I quickly paid the tax, but it showed me I will never really own my home, but the county will let me live here only as long as I pay my annual rent (tax).
Your property tax is only $500 a year?
You’re lucky you got a letter at all.
If you find that an outrageous statement, you can take it as gospel that there is some truth out there that people do NOT get notified. When I researched our County’s notification requirements, I was astounded to find ONE mailing, NON-registered, is all that’s required. No door posting, no personal notification, no registered-mail.
EVEN IF you did have title insurance, most such companies have VERY FINE PRINT that says they are NOT responsible for any errors!!!!!
Since you are required to have the title company in the process, I think this is outright fraud.
Title Ins. is of no help if your Mtg. Co. goes BK AFTER your purchase.
I am pretty sure that when you make your last mortgage payment & you have been on an impound account where the bank pays your taxes & insurance, it is the homeowner’s responsibility to notify both the county & the insurance company that all bills should henceforth come directly to YOU.
No offense, but your question is quite ignorant.
For years now people have been complaining of not being able to find out who actually has title to their property, it having been traded around in the mortgage-backed securities scandal (which has never been resolved).
A friend of mine just went through this with Wells Fargo, having spent >$30,000 in legal fees, just to have a corrupt judge find in the bank’s favor DESPITE the fact they could never produce the title (it was a technicality he perhaps could have beat had he been able to afford better representation, but at face value it is THE judge these bank attorneys seek out, as he finds in their favor in a majority of cases).
This is a fairly recent article that elaborates on the problem, a potential solution and terminology so you can ‘rediscover’ the issue
I have nothing but contempt for anyone that works in the real estate/mortgage industry, no different than the contempt I have for the county tax jack-boots. If that statement offends any freepers, TS; it’s my opinion and it’s shared my many.
No offense, but you’re quite rude.
When I registered the deed to my home with the County Registrar of Deeds, I assumed there was some connection between them and the County Tax Assessor’s Office next door, but apparently there wasn’t.
Valuable lesson learned here: Never assume anything when dealing with government offices.
“They didnt have title insurance? Every mortgage company requires it. How can you not have title insurance??”
Every mortgage company requires lender title insurance. Owner’s coverage is optional. I always urged my clients to take it as its a one time fee for about $300. But you can refuse it. Don’t be that guy.
Your link is a Occupy group.
These are the kooks that want cities to seize and discharge mortgages.
That FReeper apparently has more in common with occupiers than with thousands of honest Americans in the real estate and mortgage professions which he uniformly and without exception has “contempt” for.
There used to be common sense Homestead Exemptions to prevent greedy government officials from taxing old people from their homes.
You are no longer protected from such abuse even the EPA can condemn your home if they decide you have a protected cockroach in your home.
No one is safe from a tyrannical government simply because they have papers.
My house is not owned by a mortgage company or a bank, it is owned entirely by my wife, me and the real estate tax assessor.
Yep, it's cheap enough to add owner's coverage on a simultaneous issue. Also, contrary to some comments upthread, lender's title insurance becomes part of the loan package that subsequent owners of the promissory note obtain by assignment. It doesn't vanish if the originating lender goes bust.
This article blurs the distinction between property chain of title and lender's documented chain of ownership of the note way more than it should.
Your property tax is only $500 a year?
Mine is only $900 and I have 8.5 acres, 3 bedroom home with in ground pool 2car garage. Mortgage is paid off.
The kooks are embracing the concept because it fits with their entitlement scheme.
Ignore the blather and focus on the issue & the terminology.
I don’t have the time to find a ‘suitable link source’ for terminology when I’m ‘throwing you a bone’. The ‘eminent domain’ scheme was proposed by some rather keen municipal officials seeking to wrest control of the problem from the irresponsible financial industry.
Frankly, if the proposal rankles the Federal Gov
I’m keen to know more. You apparently have no idea how profitable it is to locales/counties to seize/auction off properties under the draconian practices of these banks that can’t produce the damned titles. If the proposal even goes nowhere, but forces the banks & the Feds to take the issue seriously then ‘maybe’ something will improve. Auctioning off a property should be a last resort and shouldn’t be so easy, yet it ‘is’ so easy in some locales as that’s how they want it.
Fact is, not one thing has changed in the real estate/mortgage industry since 2007. Nothing.
In real estate, I take it?
Then rude I will be.
I work in the industry and have had to put up with all the ridiculous new regulations and rules (which do NOTHING to help consumers).
With millions of mortgages; no doubt some people had some weird and unfortunate things happen to them. Such as a dumb contractor who had the wrong address and came to the wrong house and moved things out and locked doors.
But for someone to say that a situation like is a bank somehow trying to seize someones home ()with no mortgage on it); is uninformed at best.
The bank in that situation did a poor job at hiring and managing contractors.
You must live in Alaska.
Exactly. Same here. There was no tax benefit to keeping the mortgage, so we didn’t.
“Fact is, not one thing has changed in the real estate/mortgage industry since 2007. Nothing.”
Try to apply for a mortgage!!
Bottom line is we went through a very severe downturn. That drop in values caused the majority of the problems. SOME lending standards were too lax at the time; we have now over corrected to the point of insanity. The fed gov has a deathgrip on the lending industry; everyone is over documenting loan files in the case that loan goes into foreclosure down the road. The lawyers will pick a loan file apart for any technicality.
The Truth In Lending disclosure has to accurate on the APR now to within 3 decimal places. If a $20 fee was somehow changed for example; and the APR was off by 1/1000%; a attorney could use that to void the mortgage potentially. Is that just or ethical? No; but it’s legal. And everyone pays for it.
Housing prices are now recovering at a good clip. Banks are now reducing staff (finally) in the foreclosure areas. Rising home prices are curing most if the issues.
You got it. Don’t pay your property taxes and you’ll find out who really owns your home.
Where do you live?
It was universally agreed at one time there was a 'housing bubble'.
The 'correction' was paid for by US Treasuries (red ink) and unequally applied.
Only the ignorant believe a 'housing price recovery' is a good thing without major industry reforms; that hasn't happened.
Nice propaganda ya got there...
Notice [ ] lien may be issued by the Tax Administrator or [ ] deputy whenever the operator is in default in the payment of said tax, interest and penalty and shall be recorded with XXX County [ ] copy sent to the delinquent [ ]. The personal property subject to such lien [ ] may be sold by the Department seizing the same at public auction after 10 days notice which means 1 publication in a newspaper in general circulation published in the County.Matters not 'where'; I'm told this 'vague' code language is quite common. A wise person would discover their own County's language and how it applies to their situation.
“Nice propaganda ya got there...”
I am trying to buy some investment real estate right now; not much on the market. Wish I had time machine. Going back about 3 years would be awesome.
Facts are facts.
One of my daughters pays $9600.00 per year——count your blessings.
The fact is this:
Residential Real Estate is ‘security’. It produces no income (vs. the ‘commercial sector’). Progressives have perverted our economy to include ‘services’ and ‘home sales & starts’ as a significant portion of the US GDP when, in fact, the latter should be a measure of the success of US policies, not a measure of year-to-year growth. But sucking manufacturing out of the economy had to result in something filling the vacuum.
Statistics are an interesting thing. No different than ‘opinions’. One thing nobody ever did was go back and adjust the past dozen years of economic statistics on which you’re basing your data when adjusted for all the losses realized as a result of sucking profits off a segment of the economy that generates none. They just take all the red ink off the balance sheet and compare current charts to past ones while conveniently ignoring the missing data. Makes for a nice ‘recovery’ chart, doesn’t it?
The lack of investment real estate is a symptom of a much larger problem.
Facts based on egregiously erroneous statistics are themselves just ‘statistics’ and equally false.
Homes appreciating at 2-3x income growth are the result. Worse, progressive public policies now embrace this cycle as it feeds their tax coffers.
I’m not having a discussion on this. There’s no debating ‘if’ crash #2 is coming, but when.
“Residential Real Estate is security. It produces no income (vs. the commercial sector). “
My tenants will pay me rent.
“Residential Real Estate is security. It produces no income (vs. the commercial sector). “
And secondly you are missing the huge chunk of economic activity that is produced through home ownership and construction.
So your solution to the economy is for 1 million of you to rent properties to tenants.
I’ll repeat my prior: I have nothing but contempt for those in real estate.
And I mis-typed (wrong word): Not income, but ‘tangibles’.
If you believe that simply building houses is a path to economic recovery, you are a troll.
“Ill repeat my prior: I have nothing but contempt for those in real estate.
There is bitterness coming out in your posts for whatever reason.
Not a good way to have a discussion about facts.
What I don’t understand is why you still had an escrow account, when you were virtually done paying off your mortgage.
The banks I’ve dealt with over the years only require escrow (and PMI) if you don’t have 20% equity in your house. As soon as I could stop the escrow payments, I did. Haven’t used one in years.
Why would you ever give the bank a free float on your money by prepaying your property tax bill or HOI bill and letting the money sit in their account to earn interest? Not only that, by stopping use of the escrow account, you ensure your tax and HOI bills come to you and that you can be certain they got paid, because you paid them!
I’m not a CPA, so what you just wrote makes no sense to me at all.
As I’m fully retired now, living the “Golden Years,” and have no plans to buy another home in this life, your advice is a little late, but thanks anyway.
You must live in Alaska
No not Alaska we live in central Florida with 8.5 acres, 3 bedroom home with in the ground pool. Been here for 32 years.