The Rush to Foreclosure: Wells Fargo Loses the Argument on Trial Modifications

As Danielle Kelley, Esq. (Tallahassee) has repeatedly predicted, the trial modification practices of the big banks are getting them into hot water. Scenarios vary. But one typical scenario  is that the trial modification is “approved” (which under current law means that it has been through underwriting) and the borrower makes the trail payments. Then the bank says the “investor” (with whom they have most likely NOT been in contact) has denied the modification. After receiving the trial payments and assuring the borrowers that they were safe in their home, the bank then forecloses. Many homeowners, unaware that they in fact probably have a binding contract with the bank on the modification, walk away.

Kelley has won cases based upon the argument that the bank had no choice but to modify the loan according to the terms of the trial modifications — and to make any other adjustments necessary to make the numbers come out right. The important point being that the payments offered in the trial modification are the same payment they will have for the rest of the term of the loan. The Bank argued that they were under no obligation to make the trial modification permanent. The Judge was furious with the bank and its attorneys, reminding them that forfeiture of one’s home is an extreme remedy, not to be taken lightly.

Of course the game of the Banks has been, all along, that they want as many of the mortgage loans in foreclosure, because that is the only way out of potential liability for refunds and buybacks of loans that have now been “assigned” to REMIC trusts, most of which were never funded and thus lacked the capacity to originate or acquire any loans. The servicers are rushing to foreclosure sale because that is an opportunity for them to claim the proceeds of liquidation of the property to get back “servicer advances” paid while they claimed the homeowner was in default (but the creditors (investors) were being paid on time in the right amount — i.e., NO DEFAULT).

The investors are suing the broker dealers (investment banks) for fraud, mismanagement of funds, documents and title. The investors affirmatively allege that the loan documents are unenforceable but when it gets down to state court level in the foreclosure cases, those assertions by the creditors are not considered relevant by a standard that does not seem to have any support under the law but which is nonetheless applied.

In all probability no investor knows of any foreclosures nor do they get notice of how the Servicers and Trustees are forcing the cases into foreclosures where the investors do the worst, the borrowers do the worst, and the banks, trustees and servicers get to take all the spoils of the largest economic fraud in human history.  I know that sounds like hyperbole. But I will bet anything that the time will come when the real truth comes out in its entirety — and the shock and awe of the whole thing becomes apparent to everyone.

While most of the cases involving trial modifications result in confidential settlements that cannot be discussed here or I would be violating the confidentiality agreement, one case recently stands out as having been at least partially litigated now.

Borrowers Can Sue Wells Fargo Over Mortgage Modifications — Reuters

The 9th Circuit, which has been considered unfriendly to borrowers, changed course in this decision.

The 9th U.S. Circuit Court of Appeals said Wells Fargo was required under the federal Home Affordable Modification Program [HAMP] to offer loan modifications to borrowers who demonstrated their eligibility during a trial period. … the appeals court rejected the argument that Wells Fargo became bound only upon sending borrowers signed modification agreements.

 

The court said this would create “unfettered discretion” for the San Francisco-based bank to reject modifications “for any reason whatsoever – interest rates went up, the economy soured, (or) it just didn’t like the borrower.”

While a federal appeals court in Chicago reached a similar conclusion last year, the 9th Circuit decision applies in several western U.S. states – among them California, Arizona and Nevada – that have been particularly hard-hit by foreclosures.

Corvello v. Wells Fargo Bank NA et al, 9th U.S. Circuit Court of Appeals, No. 11-16234.

 

This decision, like others coming out of Federal and State courts shows a growing anger and mistrust of the banks and their attorneys that most borrowers would say is long overdue.

For people familiar with determining the present value of a flow of funds, the analysis of the modification deals is easier. The average length of time a home is held by its owner is around 7 years, but many people stay in the home for life. Just to make things easier, here is a way of looking at certain modifications that don’t seem to offer anything of value on their face.

Assuming the original mortgage was $500,000 and now with default interest, attorneys fees etc. the total demanded is $600,000 the bank might offer a low interest rate (2%-5%) with amortization for forty years at a payment you can afford. But you don’t like the deal because you were the victim of appraisal fraud so you would be accepting a mortgage and waiving your defenses and ratifying the ownership of the loan in exchange for what?

The payment over 40 years changes the equation dramatically and does address the appraisal fraud if you stay in the house for a long time. In 40 years, with even low inflation, each dollar you are spending now is going to be worth around 20 cents. And even without any organic growth in prices from demand, your house might be worth $300,000 now, will be priced in 40 years at around $1,200,000. This assumes 2% rate of inflation. The risk factors are deflation and stagnation, which at this point most economists are not predicting.

For more information on trial modifications, litigation support, or other related information contact Danielle Kelley at 850-765-1236.

 

 

 

 

 

20 Responses

  1. REASSIGNMENT ORDER OF THE NEW CENTURY MORTGAGE AND HOME123 CORPORATION BANKRUPTCY IN DELAWARE

  2. Yes, I did KC…interesting web of deceit.

  3. Poppy did you notice that in one cases I posted how Safeguard Properties was working for Corelodgic?

    Interesting … What is the role of Corelodgic?

  4. That’s it Poppy .. Keeping POKEING at that Air Bag until it deflates.
    🙂

  5. “Complaints are going to happen,” Klein said at the conference
    “It is the habit of people, they love to complain.”

    Really, Mr. Klein…is that how you sold a house with a body decomposing in it? What if he were sick and your guys just locked him in the home? Not only are we suing you, but the family has been contacted…and I’ll just bet they find a lawyer, pro-bono….just for you…..Good Job!

  6. Color me slow (because I already read this). One of the reasons the banksters want loans in default to “modify”:

    “The following shall not be treated as a refinancing:

    (4) A change in the payment schedule or a change in collateral requirements AS A RESULT OF THE CONSUMER’S DEFAULT OR DELINQUENCY, unless the rate is increased, or * the new amount financed exceeds the unpaid balance plus earned finance charge ……….”

    http://www.law.cornell.edu/cfr/text/12/1026.20

    1) Refinancing requires a license (and iin some states, so does
    “modifying” a loan owned by someone else.

    2) The goal is to avoid all the TILA disclosures on the modification (a.p.r., amt financed, total of payments). I still think modification requires these disclosures (a tila reg z) and I’m pretty darn sure modifying a loan owned by someone else requires a license. *I think I’ll be able to tell soon if the “new amt financed (generally) exceeds the unpaid balance plus earned finance charge”, which would itself trigger these disclosures. Imo, a mod should have an initial reg Z at the proposal stage, a final reg Z, and a 3 day right of rescission (even tho the law attempts to distinguish a mod from a refi), at least on owner-occupied properties.

  7. “As stated in the Residential Mortgage License Act of 1987, licensed individuals are subject to the act. (attached as Schedule B).205 ILCS 635/1-3 states that “(a) No person, partnership, association, corporation or other entity shall engage in the business of brokering, FUNDING, ORIGINATING, SERVICING or PURCHASING residential mortgage loans without first obtaining a license from the Commissioner in accordance with the licensing procedure provided in this Article I and such regulations as may be promulgated by the Commissioner.”

    Penalties for operating in the state without a license: A fine no greater than $25,000 per violation of the Residential Mortgage License Act of 1987, which includes performing services without a license as well as other things such…..”

    More info on IL and other states:

    http://usloanmodificationlaw.com/illinois

  8. Link to HUD on loan modifications:

    http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqlm

    says loans should be re-amortized for 360 mos. and lenders to 86 all late fees.

  9. http://www.huffingtonpost.com/2014/01/30/bank-contractors-background-checks_n_4682382.html?utm_hp_ref=business

    After hundreds of lawsuits and thousands of complaints, banks are finally pushing for reform in one of the darkest corners of the housing market. Under new guidelines expected to be adopted this year by most of the industry, the workers that watch over millions of homes in default or foreclosure will be subject to heightened levels of background checks.

    The measures are meant to screen out people convicted of a criminal offense, such as theft or fraud. They follow widespread allegations, first reported by The Huffington Post, that the handymen and home inspectors that banks hire to look after vacant properties are breaking into still-occupied homes, and looting them of valuables. Some of these people, who work indirectly for the banks through a web of contracting companies, have lengthy criminal records.

    “The intent is to give communities a high level of confidence that the people walking around in homes are not going to cause problems,” said Eric Miller, the executive director of the National Association of Mortgage Field Services, the trade association that helped design the new standards.

    The new screening requirements mark the most significant effort by the mortgage industry to date to crack down on abuses that have resulted in a wave of unflattering media coverage, hundreds of consumer lawsuits and a case brought by the Illinois attorney general against Safeguard Properties, the biggest player in the industry.

    HuffPost’s investigation last year found that most of the break-in complaints involve homes that are in some stage of default or foreclosure, but still in legal possession of the occupants. In many instances, contractors stand accused of ignoring obvious signs of habitation, kicking down doors and crawling through basement windows in order to gain access, then changing the locks. In some cases, they are also accused of helping themselves to valuables found inside. One contractor working for Safeguard Properties in Arkansas is accused of looting a home of paintings and other valuables. A Connecticut woman claims another one of these workers stole her son’s piggy bank.

    It’s not clear how often contractors accused of such thefts also have a criminal record, though sources within the industry say people with checkered pasts are drawn to the work, which often requires little training or special skills. While there is no data to show whether these people are more likely to commit abuses than others in the industry, background searches of individuals named in several consumer cases alleging break-ins and thefts revealed lengthy criminal pasts.

    In one case, in Florida, a contractor arrested previously at least six times on felony charges is accused of taking a laptop computer and other items from a vacation home. According to a police report, the contractor, who was working indirectly for CoreLogic, a company based in Westlake, Texas, denied the allegations, even though his fingerprints were found on a can of beer left open on a counter in the home.

    At the forefront of the push for new oversight is Wells Fargo, which recently began requiring its contractors to have “a satisfactory background check in place” before performing any work on its properties, according to a spokesman. Several companies that work for Wells Fargo, including Mortgage Contracting Services, based in Plano, Texas, have already alerted subcontractors and other workers that they are expected to comply with the new guidelines by the end of January.

    In an email, a Wells Fargo spokesman said the change in policy came in response to “a lot of scrutiny around this issue.”

    The guidelines allow for different levels of scrutiny, though the companies adopting the policies haven’t yet said which workers would be subject to the most intensive screenings. Miller said the aim was to prevent contractors with recent criminal convictions from stepping onto a property, a standard that would apply even to the low-paid workers who mow lawns.

    Seven of the biggest foreclosure contracting companies that deal directly with banks have said they will adopt the heightened screening rules, Miller said. “We are seeking to professionalize our workforce,” he said.

    Bret Douglas, who owns Team Ironclad Preservation with 25 employees near Daytona Beach, Fla., said he understands the reasoning behind the heightened screening requirements, but said he is confused by the new guidelines. It isn’t clear, he said, whether employees with criminal records could still perform basic maintenance work.

    Douglas said he objects to the cost of the background checks — $65 each — and the presumption that someone who has committed a crime in the past should not be permitted an opportunity at redemption.

    “If they did the crime and served the time, I say they should be given a second chance,” he said. Several workers on his crew have criminal records, he said, adding that it is difficult to find adults willing to mow lawns in the hot Florida sun who don’t have spotty pasts.

    Also still unknown is how aggressively the mortgage companies will enforce the new standards. In the past, banks largely deferred to the contractors they hired to oversee themselves, a strategy that hasn’t proved particularly effective.

    That’s because the contracting companies have often brushed off accusations that they are failing to supervise their workers. Safeguard Properties, which has attracted the majority of complaints, says it has required background checks for years.

    At an industry conference in October, Safeguard founder Robert Klein signaled that stepped-up scrutiny wouldn’t be welcome. Safeguard, he said, “has been monitoring itself for quite awhile.”

    “Complaints are going to happen,” Klein said at the conference
    “It is the habit of people, they love to complain.”

  10. Economic relations torts affect three categories of interference or injury that result in monetary loss. They are injurious falsehood, interference with contractual relations and interference with prospective advantage.

    Intentional Torts Of Economic Relation
    Today’s economy drives people to be very competitive. Businesses scan the environment looking for innovative ways to keep ahead of their competition. Some businesses develop new products and services that outperform their competition. Some business may engage in intentional interference with economic relations that cause financial harm to others, like stealing a valued employee, publishing false information or even interfering with a business’ future economic gains.

    Let’s break it down. The three types of tortuous behaviors that can affect another party’s business conditions are:

    Injurious Falsehood
    Interference with Contractual Relations
    Interference with Prospective Advantage
    All three talk about different behaviors but share one common thing; they all cause economic losses.

    Injurious Falsehood
    When a party publishes or states an injurious falsehood, what they are really doing is making a widespread statement that defames or tarnishes another person’s reputation. The statements must be so damaging that in itself causes another economic loss. Before we review an example, it is important to know that certain conditions must be present and proven by the plaintiff:

    The defendant actually made a false statement about another party’s business.
    Someone other than the plaintiff was made aware of the statement.
    It can be proven that the statement was made intentionally and to cause harm.
    An economic loss by the plaintiff can be proven.
    In Harwood Pharmacal Co. v. National Broadcasting Company (1961), the plaintiff, Harwood Pharmacal, alleged that the defendant, National Broadcasting Company (NBC), broadcasted a television show in which the defendant contended that a product manufactured by Harwood was dangerous. A sleep aid, called Snooze, manufactured by Harwood came under fire during an NBC broadcast. During the broadcast, it was said that Snooze was addicting and contained so many different types of drugs, one would need to go to a hospital to kick the habit.

    The outcome of the broadcast – Harwood’s sales decreased, causing an economic loss. Harwood argued that the comments made during the broadcast were defamatory, malicious and intentional. The defendant, on the other hand, stated that they never meant harm. The court maintained that the language used in the broadcast was enough to damage one’s reputation and ruled in favor of the plaintiff.

    Interference with Contractual Relations
    Another economic relations tort deals with interference with contract relations. Sometimes called tortuous interference, interference with contractual relations occurs when a third party intentionally interferes with the contractual relationship of two other parties. A case may help explain. First, let’s review the elements needed to make this allegation:

    The plaintiff had a contract with another party.
    The defendant had knowledge of the contract.
    The defendant intentionally enticed the contract party to breach the original contract.
    There was no justification for the breach.
    The plaintiff suffered damages because of the breach.
    In appeal, White Plains Coat and Apron Co., Inc. v. Cintas (2007) taught us a lesson about competition and the application of elements for tortuous interference. In this case, White Plains Coat and Apron and Cintas Corporation competed for the same customers. In the course of business, it was customary to advertise through mailings and other means to attract new business.

    White Plains Coat contended that Cintas lured their customers to breach contracts for services and join Cintas in contractual relations for the same or similar products. White Plains contacted Cintas with a list of customers that they felt breached and ordered Cintas to stop advertising to its customers. When Cintas refused, White Plains filed suit, first in state court and then in appeals court. This was to no avail.

    State court believed that Cintas was merely advertising to customers via proper channels and with no intention of interfering with any existing contractual agreements. What had not been established was a pre-existing relationship between Cintas and breaching customers prior to the breach. In layman’s terms, the court did not see that Cintas knew specifically of a contractual agreement between any specific parties when they launched their advertising campaigns. So the question is whether Cintas’s interest in generating more business can be viewed as interference with White Plains Apron’s contracts with its customers? Both state and appellate court ruled no, it did not.

    Interference with prospective advantage works a little different than this tort. Although interference remains the same, the next tort deals with a third party causing future economic damage to another.

    Intentional Interference with Prospective Advantage
    In the tort of intentional interference with prospective advantage, the defendant intentionally interferes with the plaintiff’s economic future. To say it a different way, if a defendant takes purposeful action against the plaintiff that places the plaintiff’s future income or revenue at risk, this may be interference with prospective advantage. A case example may help.

    In Tarleton v. M’Gawley (1793), M’Gawley and Tarleton were both traders on the Cameroon coast. During a trading trip, M’Gawley shot at natives to scare them off. He did this, Tarleton alleges, to interfere with the trading between Tarleton and the natives. M’Gawley claimed he did this because he had an exclusive agreement with the natives of Cameroon. However, a court ruled that shooting at the natives interfered with Tarleton’s ability to trade, which would cause a future economic hardship. And a careful look at the elements will help to explain the decision:

    The plaintiff had an economic relationship with a third party.
    The defendant knew of this relationship.
    The defendant disrupted the relationship in some manner.
    Disruption or interference can be proven.
    The interference caused economic damage to the plaintiff.
    In Tarleton v. M’Gawley, all elements exist. He knew about Tarleton’s relationship with the natives and shot bullets at natives as they attempted to make trades with Tarleton. Unable to trade, Tarleton’s revenues were affected.

    Lesson Summary
    As we learned, all three torts involve purposeful behavior that affects another’s economic gains. To sum things up, intentional interference with economic relations is tortuous action that causes financial harm to others. The three types of tortuous behavior are:

    Injurious Falsehood
    Interference with Contractual Relations
    Interference with Prospective Advantage
    When a defendant states an injurious falsehood, he is making a widespread statement that defames or tarnishes another person’s reputation, like saying your competition’s products are dangerous or defective, even if they are not. Certain elements must be present to prove a claim, like the defendant made a false statement about another party’s business, someone other than the plaintiff was made aware of the statement, it can be proven that the statement was made intentionally and to cause harm and an economic loss by the plaintiff can be proven.

    Next, interference with contractual relations occurs when a third party intentionally interferes with the contractual relationship of two other parties, like stealing your competition’s customers by encouraging them to break contracts with your competition. Certain elements must be met, like the plaintiff had a contract with another party, the defendant had knowledge of the contract, the defendant intentionally enticed the contract party to breach the original contract, there was no justification for the breach and the plaintiff suffered damages because of the breach.

    Finally, for intentional interference with prospective advantage, the defendant intentionally interferes with the plaintiff’s economic future, like damaging a farmer’s fruits so he cannot sell them. He would have to prove the following: the plaintiff had an economic relationship with the third party, the defendant knew of this relationship, the defendant disrupted the relationship in some manner, disruption or interference can be proven and the interference caused economic damage to the plaintiff.

  11. Fannie and Freddie are the real problems !!!!

  12. KC when I write all the roads lead back to Produce the Note. This is only an observation.

    NEVER AGAIN.

    After all we have to play the game. We dont want to be party poopers.

  13. A conveyance happens when a property owner transfers property to a new owner. This is known as a voluntary property transfer, or title by deed. This lesson explains voluntary property transfers and title by deed.

    Voluntary Property Transfers
    Today, you’re a real estate attorney! Mary Mulligan and her three sisters are selling their family home. It’s been in their family for almost a century and changed hands within their family many times. They’ve hired you to help them because this will be the first time it will be owned by someone outside of the Mulligan family, and there’s a lot involved to make sure this conveyance, or property transfer, goes smoothly.

    The sale of real estate is one form of voluntary property transfer, or property conveyance. Property is also voluntarily transferred when it’s gifted or left through a will. Voluntary transactions may seem straightforward, since they’re transactions that are purposeful and intended by both parties. But the act of transferring real property can sometimes be complicated.

    This is because there are several different legal steps that must be achieved before a property is considered to be properly, and therefore legally, transferred. As the attorney, this will be your job. You will determine which steps the family must take, and then help the family take those steps in order to secure a legal transfer of the property. You’ll oversee the signing, sealing and delivery of this entire legal process for Mary and her sisters. Let’s take a look at the process.

    What Is a Deed?
    You’ll want to start by discussing the deed with Mary and her sisters. A voluntary property transfer is also known as a title by deed. This is because title is defined by who holds the deed. A deed is the legal document that transfers ownership of the real property from one party to another. Title is simply another word for ownership. Let’s say that Mary and her sisters sell the Mulligan house to Max. They’ll execute a deed that transfers ownership, or title, of the house to Max. Max will have title by deed.

    Mary and her sisters will need to put together a deed for the new owner, but the deed won’t be quite that simple. As the attorney, you need to make sure that the deed contains certain legal details. By law, the deed must be drafted so that it meets particular execution, or procedural requirements.

    In order to be legally executed, or finalized, a deed must:

    Identify the buyer
    Identify the seller
    Identify the property using the legal description
    Be signed by the person transferring the property and
    That signature must be properly notarized
    The legal description of the property is a description of the property using the U.S. Public Land Survey system rather than a numbered street address system. This legal description is required in all instruments of conveyance, but remember that the Mulligan family has owned this home since it was first built.

    There’s a possibility that this property has never had a survey done, or that one was done but it’s been lost. You’ll need to research this issue. If there’s no recent legal description of this property, then you’ll need to order a survey of this property so that an accurate legal description can be added to the new deed.

    Two Types of Deeds
    Generally speaking, there are two main types of deeds used in voluntary real property transfers. You need to decide which one would be best for Mary and her sisters to use. The first is a warranty deed. This is the most common type of deed. This type of deed transfers ownership and promises, or warrants, that the seller is transferring a good and legally valid title to the property.

    You’ll use this type of deed if your title research shows that Mary’s family holds a clear, legal title to the house. The Mulligan family’s warranty deed to Max, then, might say, ‘We promise that we own the house that we’re selling you, and the title to it is legally valid and good.’

    The second type is a quitclaim deed. This type of deed transfers the ownership interest the seller has in the property, but doesn’t promise, warrant or guarantee that interest. Remember that the Mulligan house has changed hands many times throughout the generations. Mary tells you that it’s been mortgaged several times, and that it was maybe even foreclosed on. Several years ago, Mary and her sisters even remember hearing a story that Great Uncle Samuel lost the house in a bet back in the 1920s.

    This is all concerning! If your research shows that Mary and her sisters may not have good or full title to transfer, then perhaps you’ll want to suggest that they use a quitclaim deed. The Mulligan family’s quitclaim deed might include language that says something like, ‘We fully transfer to you the entire interest that we own in the house, whatever that interest might be. However, we don’t warrant that interest or guarantee our title that we’re selling you, and we don’t hereby guarantee that we own any particular interest in the property.’

    Delivery and Acceptance
    Once you’ve decided what type of deed would be best, you know you’ll need to draft and execute that deed. Once the deed is executed, the next step is delivery and acceptance of the deed. These steps involve the participation of the buyer.

    Delivery and acceptance means that the executed deed must be delivered to, and accepted by, the buyer of the property. If the property is being gifted, rather than sold, then delivery and acceptance will involve the person to whom the property is being transferred. Delivery and acceptance might seem trivial, but it must take place in order to have a legal conveyance of the property. For this reason, the delivery and acceptance are normally handled in an official and more formal manner.

    For example, as the attorney, you won’t want to send your assistant Skip over to leave the executed deed on Max’s front porch. This isn’t an official delivery, and Max didn’t, as far as we know, accept the deed. We won’t know if Max ever actually got the deed. It would, however, be acceptable to mail the deed to Max using certified mail, so that Max has to sign for the deed when he receives it. That way, we know the deed was delivered and that Max accepted it.

    If the buyer is in the possession of the deed, then it’s assumed that the deed was properly delivered and accepted. For example, if Max shows up at the courthouse to record his new deed to the Mulligan house, then it will be assumed that the deed was properly delivered to him, and that he accepted the delivery of the deed. Delivery and acceptance doesn’t have to be proven in any particular way. It also doesn’t have to be accomplished in any particular formal or official manner, as long as it can be shown.

    Recording the Deed
    The reason delivery and acceptance are so important is because the buyer can’t record the deed if he or she doesn’t possess the executed deed. Recording simply means publicly filing the deed with the county land office where the property is located. This is the last step in the voluntary property transfer process.

    Once the deed is properly recorded, the property will have officially changed hands. Recording is the process that allows others to know that the buyer now owns the property. It puts others on notice that he or she is now the owner, and, by doing so, protects the new owner’s property interests. Simply put, the sooner Max records his deed, the sooner he can prevent anyone else from falsely claiming title.

    Let’s say that someone else files a claim to the land, like a judgment, before Max records his deed. Max says he didn’t have his deed, and so he couldn’t record it. He blames you. This is why delivery and acceptance is an official step that must be legally accomplished. You will need to show that the deed was delivered to and accepted by Max in order to show that it was his fault that he didn’t properly act to secure his interests.

    It’s important to note, though, that in most real property sales like this one, the escrow closing agent would record Max’s deed the same day that the Mulligan sisters and Max close the sale of the home. Max wouldn’t usually have to record the deed himself, and you wouldn’t have to deliver the deed to Max.

    Lesson Summary
    Let’s review. The sale of real estate is one form of voluntary property transfer, or property conveyance. Property is also voluntarily transferred when it’s gifted or left through a will. All of these voluntary property transfers are also known as title by deed. This is because title is defined by who holds the deed. A deed is the legal document that transfers ownership of the real property from one party to another. Title is simply another word for ownership.

    Generally speaking, there are two main types of deeds used in voluntary real property transfers. The first is a warranty deed. This is the most common type of deed. This type of deed transfers ownership and promises, or warrants, that the seller is transferring a good and legally valid title to the property.

    The second type is a quitclaim deed. This type of deed transfers the ownership interest the seller has in the property, but doesn’t promise, warrant or guarantee that interest.

    Both of these types of deeds must be drafted so that they meet particular execution, or procedural requirements. In order to be legally executed, or finalized, a deed must:

    Identify the buyer
    Identify the seller
    Identify the property using the legal description
    Be signed by the person transferring the property and
    That signature must be properly notarized
    The next step in the transfer is delivery and acceptance. This means that the executed deed must be delivered to, and accepted by, the buyer of the property. Delivery and acceptance is important because the deed can’t be recorded if the buyer doesn’t possess the deed.

    Recording simply means publicly filing the deed with the county land office where the property is located. This is the last step in the voluntary property transfer process. Once the deed is properly recorded, the property will have officially changed hands.

    Ask Our Experts

  14. Eleventh Circuit Holds Certain Improper Disclosures Do Not Trigger TILA Rescission 1/28/2014 by BuckleySandler LLP
    http://www.jdsupra.com/legalnews/eleventh-circuit-holds-certain-improper-25142/

    snip
    The court held that the allegation that the borrower was not informed of the real lender did not support a right to rescind because (i) it was not a material disclosure under the TILA; and (ii) the borrowers were, in fact, apprised of the party financing the mortgage.
    end snip

    Trespass Unwanted, Creator, Corporeal, Free, Independent, People, State, Life, In Jure Proprio, Jure Divino

  15. RE: ” all the roads lead to (back to) Produce the Note ”

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    . Up Shit Creek Without a Paddle! .

  16. all the roads lead to (back to) Produce the Note.

  17. In many cases the loan that Wells Fargo has or had on their book for servicing they could not modify or foreclose on legally. Wells just sold $39 billion in servicing rights to Ocwen, just as BOA been downsizing their mortgage servicing footprint.

    These servicers/lenders are simply pulling in revenue until they can foreclose and because the homeowners don’t have the knowledge or funds to fight these banks.

    How long have we talked about what Neil just now talking about, but each revelation that Neil come up with we been talking about for over 2yrs. Neil not reading any of this and so I ask myself what really are we doing here?

    Just got my internet back up as my line was cut???? But what I notice without the internet in one week was it just as well have been a 100yrs, because some people just never will get it, that the banks have a title/ownership problem and that is the pink elephant in the room!

  18. Dual Tracking, aka, Parallel Foreclosure, may have been “legal”, but it clearly was not ethical.

  19. Coming from an attorney in NC…cannot have a 40 year loan. The last 25% of the loan, go to court, Done!

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