Send In The Clouds - Buying A Bank Owned Property In Massachusetts

By
Real Estate Broker with 508-209-5000
Buying a Bank Owned Home in Massachusetts - Buyer Beware!

Westport River - Massachusetts by Judy Jennings


The clouds first started gathering back in March when Justice Keith C. Long invalidated the sale of two foreclosed properties in Springfield Massachusetts. He ruled them invalid as a result of the banks not having filed the appropriate paperwork in accordance with Massachusetts state foreclosure law. The original ruling was just upheld by a state Land Court judge.

What will this do to pending and future sales of foreclosed properties? In Plymouth County alone, there are 106 pending sales of bank owned properties currently listed in multiple listings service. I wonder how many of those will not make it to closing due to a cloud on the title.

What does this mean to you if you already purchased a foreclosed home in Massachusetts? It could mean nothing, but I hope you purchased individual title insurance, just in case.

Did you know that state law allows people two decades to dispute land ownership?

Click on the following link to read the complete story posted in the Boston Herald -
Ruling could undo thousands of foreclosures - by Jerry Kronenberg

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
Americas Relocation Home Services - Our Mission is to Connect Home Buyers & Sellers With Local Real Estate Professionals
Local Expert
MA REALTORS
Tags:
buying a foreclosure
plymouth county foreclosed homes
judy jennings

Comments 12 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tshirt to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
326,654
Judy Jennings
Sales Director
508-209-5000

Trey - The problem is that a lender will NOT finance these homes, and even some title companies are refusing to provide title insurance for these properties. Once that happens the property will sit vacant and be unsaleable for an indefinite amount of time. If it is in an area where there are numerous properties with the same problem then it impacts the whole area making it further depressed.

This ruling appears to be an attempt to get the lenders to abide by the state foreclosure laws and record the appropriate documentation when transferring ownership of the properties. Some of these lenders were not recording these documents for several months after a transaction and even worse, some documents were (gasp) getting lost. How do you reproduce an original document after the fact, especially if several months have passed?

It will be interesting to see whether or not this ruling will be appealed. The case involved two very large lenders.

October 20, 2009 02:06 PM
Rainmaker
1,084,017
Jim Frimmer
Realtor & CDPE, Mission Valley specialist
HomeSmart Realty West

Twenty years to dispute land ownership?!!! Wow. Title insurance sounds like a necessity there, not that it's not a necessity everywhere else, too.

October 21, 2009 11:27 PM
Rainmaker
326,654
Judy Jennings
Sales Director
508-209-5000

Jim - The twenty years was an eye opener for me too. Title insurance is a smart choice and is a one time expense for the individual property owner.

October 22, 2009 06:51 AM
Ambassador
2,030,439
Todd Clark
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
Keller Williams Realty

I just had clients walk away from a foreclosure because of title issues, it just wasn't worth it. There were so many legal battles over this home it wasn't even funny. The original person bought the home with funds he stole from a trust and there was lawsuits from 4 different family members.

 Todd Clark - www.LivingBeaverton.com

November 06, 2009 08:19 PM
Rainmaker
326,654
Judy Jennings
Sales Director
508-209-5000

Todd - That sounds ugly. Smart move for the clients to walk away from that nightmare.

November 07, 2009 08:35 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the world to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
326,654

Judy Jennings

Sales Director
Which Pinehills Condo Fits Your Lifestyle?
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Offering quality built condominiums/townhomes & homes built by the award winning Green Company within the Pinehills Community. Visit our models in Winslowe's View 9 a.m. to 5 p.m.

Twitter Button from twitbuttons.com