29. October 2011 by admin.

National Juggernaut: This Cartoon Seemed Far-Fetched In 1948

This 1948 Cartoon brings home to us the value of Freedom.

We would not be investors without this. Take the time to watch!

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25. October 2011 by admin.

The highest court in Massachusetts ruled that a homeowner who bought a foreclosure that hadn’t been properly conducted by the foreclosing bank in 2006 didn’t have legal ownership of the property. 

The decision by the Supreme Judicial Court casts a cloud over the legal ownership of any properties in Massachusetts where banks didn’t properly convey title when foreclosing. The problem has gained attention nationwide because of banks’ use of “robo-signing” and other dubious practices that may have broken chains of title on foreclosures.

You can’t lose what you never had – or can you? The Massachusetts Supreme Court ruled earlier this week that Francis Bevilacqua, who purchased his home at a foreclosure auction in 2006, never had legal title to the property since the lender had no right to foreclose on it in the first place[1]. Five years later, the robo-signing bank’s “dubious practices” stand to cost Bevilacqua, who purchased the home long before the issues with title associated with robo-signing came to light and believed that the title was clear, his home.

“[It’s] scary,” said Bevilaqua’s attorney, adding that people with this new type of cloud on their title “don’t know they have this problem.” Prior to the state’s U.S. Bank vs. Ibanez decision, in which the Supreme Court ruled that the prior owner of a property has claim to a property if the foreclosure process is proved invalid, Bevilacqua would have been considered to have clear title. However, theIbanez case changed the game because, according to the decision, if “the bank held nothing [due to improper foreclosure], Bevilacqua acquired nothing and had no standing as a result”[2].

Although Bevilacqua attempted to clear the title upon learning of the issue recently, his petition, based on a statute “designed to allow the holder of a clouded title to clear that title,” was denied by the state Land Court. The court ruled – and the Supreme Court upheld the ruling – that Bevilacqua did not have the necessary “plausible claim to the title” since he acquired the title following an invalid foreclosure[3]. The ruling makes it clearer, at least in Massachusetts, how courts will respond when ownership of properties that were foreclosed on during the “robo-signing era” comes in question. They will likely rule in favor of the former homeowner.

There is still a possibility that Bevilacqua will be able to keep his home via a foreclosure proceeding on the prior owner. His lawyer has stated that they will proceed with this option. There is currently no information available on how the former owner of the home plans to respond to the news.

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25. October 2011 by admin.

Congresswoman Susan Davis Introduces Bill to Help Homeowners Avoid Foreclosure

Washington – As homeowners in San Diego and across the nation continue to tangle with banks, Congresswoman Susan Davis (D-San Diego) introduced legislation to give people another tool to avoid foreclosure and the subsequent damage to the their credit rating.  The Short Sale Transparency Act will require Fannie Mae and Freddie Mac to disclose the minimum asking price they are willing to accept for a short sale if the first offer is rejected.

“People deserve a real chance to avoid foreclosure. It is unfair to expect someone to complete a short sale instead of abandoning their home to foreclosure, if the banks don’t meet them half way,” said Davis.  “So many homeowners are willing, even eager, to work with banks to get out from under the mortgage and protect their credit rating.  But far too often, they find themselves in a guessing game as to what dollar amount will complete the sale.”

For many Americans a short sale, the sale of a home below its value, is a last chance to avoid foreclosure.  However, when the asking price is unknown, short sales become less viable because homeowners are essentially shooting in the dark when submitting bids to a bank.  As a result, loan servicers can repeatedly deny short sale offers without giving homeowners guidance on the price the bank is asking.  Ultimately, this back and forth ends in foreclosure.

On the other hand, if an offer is, for example, $2,000 short and the homeowner knows this, they could find a way to make up the difference in order to complete the short sale.

Disclosure is essential to ensuring fair transactions between investors and borrowers. Fairness to consumers is critical to boosting the economy and ending the cycle of foreclosures.

{For our investors– this will change the market drastically!!  What effect do you think this will have on your Real Estate investments?}

Congresswoman Susan Davis - Press Release

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