Announcement

Collapse
No announcement yet.

Business opportunity? Foreclosure obstruction?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Business opportunity? Foreclosure obstruction?

    From: http://seekingalpha.com/article/4222..._email&u=88714

    Since the funds/pools didn't originate the loans and it's a bunch of kids who are putting these things together, the documentation has been horrendously sloppy. So sloppy that there are several Legal Aid groups who are stopping home foreclosures dead in their tracks. Indeed, one of the prime agencies that would submit requests to the court for replacement docs has now stopped doing so as it is beginning to realize it could be accreting huge liabilities."
    How's this for an internet pop-up/search ad based business: Offer professional services to review documentation on mortgages in order to obstruct foreclosure.

    And incidentally if this really is prevalent then it will extend foreclosure proceedings even longer than the 12-18 months from first notice of default (NOD). This in turn means even loss recovery via foreclosure is going to be more difficult and expensive.

    Hrm!?!

  • #2
    Re: Business opportunity? Foreclosure obstruction?

    This issue is unlikely to have any meaningful affect, at least in non-judicial foreclosure states. The only way the owner can stop the sale is to sue the foreclosing beneficiary, AND get a court order to stop the sale. No attorney will do this on contigency, and owners that can't afford their house payments typcially can't afford an attorney.

    Note that while funds/pools didn't originate the loans, the servicer that is handling the foreclousre often did - so in many cases this is really a non issue.

    Also, even if the owner was able to get the delay, they would still ultimately lose. The court is not going to strip the mortgage even if the originaly note was actually lost.

    Finally it isn't a bunch of kids that typically handle foreclosures... it is attorneys. They certainly know how to file lost note affidavits, and document the process sufficiently to insure a sale won't be overturned.

    As a foreclosure buyer I've been sued twice by owners saying the sale was bad because of lender documentation or process issues. The lenders attorneys are very efficient at dealing with these cases and both were resolved fairly quickly in the lenders (and my) favor.

    Sean

    Comment

    Working...
    X