Messy Foreclosure Cases Likely to Make a Lot of Work for Lawyers
Refusing to vacate a landmark ruling in March that is likely to create a lot of work for real estate lawyers, a Massachusetts judge today held banks accountable for failing to timely file all the foreclosure paperwork that he said is required by state law.
By doing so, however, Land Court Judge Keith Long also made it difficult or impossible for those who already purchased foreclosed homes with so-called toxic titles based on incomplete ownership information to obtain mortgages and title insurance or, potentially, sell their properties, according to the Boston Herald.
However, the ruling is good news for homeowners fighting foreclosure, because it is expected to cause considerable delay in their cases.
To resolve the situation and get proper title, banks apparently will have to correct errors in prior filings and re-foreclose, the newspaper says.
The judge’s ruling concerned two properties on which U.S. Bank and Wells Fargo reportedly provided incomplete ownership histories in court filings. Judges are expected to apply the same standard in other cases, too, however, giving the case statewide impact. It could also potentially prove persuasive to judges outside Massachusetts.
Additional coverage:
ABAJournal.com: ” ‘Toxic Titles’ Make Mortgage Foreclosures a Lot More Complex”
Boston Globe: “Judge reaffirms crucial foreclosure sale ruling”
