Another example of poor title work in the foreclosure process. A Massachusetts Land Court Judge invalidated a foreclosure that took place in Springfield. In his decision, he reasoned that since an assignment to the foreclosing lender was recorded after the foreclosing documentation, the foreclosure was invalid.
So, if a foreclosure is invalid, can the prior owner (borrower) claim against the title after a new buyer has purchased a house in foreclosure?? What if proper notices were not given to the mortgagee?? What if a lender improperly rejected a government mandated modification?? Could case law resulting from mortgage broker fraud invalidate a mortgage?? If anyone thinks thatTitle Companies are out of the woods with title claims – think again. With the phenomenal number of foreclosures and poor quality of title work, we are in for a tough time for the industry.
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