While industry members may be more confident about the foreclosure process and how to ensure they are insuring marketable title to REO properties, state legislatures and regulators continue to look at the foreclosure processes in their states.
The Massachusetts Supreme Judicial Court is not quite ready to come to a decision in Eaton v. FNMA, handing down an order requesting supplemental briefs discussing certain aspects of the case. Their opinion in the case will determine whether a foreclosing entity must hold the promissory note and the mortgage in order to properly foreclose on property in the state.
U.S. District Court Judge John McConnell Jr., in charge of handling hundreds of foreclosure transactions in Rhode Island, has appointed a special master to help with foreclosure negotiations.
“[The current] situation is problematic for both sides,” he said. “Plaintiff homeowners are confronted with the emotional and economic devastation of losing their homes to foreclosure. Defendant financial institutions are confronted with countless mortgages on which homeowners have stopped paying. The problem is exacerbated by a significant downturn in real estate values that has placed many of these properties under water. And courts, this one in particular, have a substantial docket of individual cases that need to be managed efficiently, fairly and in accordance with the law and proper procedure.”
The court appointed as special master Merrill Sherman of Jamestown, R.I. She is a former president and chief executive office of Bancorp Rhode Island Inc. and former chairwoman of Crossroads Rhode Island.
A bill has been introduced in the Indiana General Assembly that would add a new section to the state’s foreclosure statutes that would protect interested and omitted parties when property gets sold at foreclosure. It also shortens the time mortgages can stay in the public record after the last installment of the secured debt before becoming expired.
Indiana is not the only state to introduce legislation addressing these concerns this year.
We at The Legal Description know that these changes have had significant unintended consequences for the title industry in the past, causing industry members to question their ability to insure marketable title to the property being purchased, not to mention a continuation of the down real estate economy in some jurisdictions. We want to hear from you. How are these new rules, laws and court opinions impacting your market and, more specifically, your business? Feel free to reach out to me via email at firstname.lastname@example.org or join us on our LinkedIn Group.
We look forward to hearing from you!