Foreclosure Defense Florida

THE IMMINENT COLLAPSE OF REAL ESTATE

4 Comments

  • magort says:

    Even ex-SNL comics (Franken) are ahead of our judges and our Supreme Court.

  • Stupendous Man says:

    I’ve missed your video commentary Matt. Its good to see you again.

    As for your message I’m afraid you may be correct in what is driving the story. Pity that our courts across the nation are unwilling to act appropriately.

  • slade smith says:

    Matt, I don’t think it’s the title insurers that are putting the pressure on the banks. Just tonight, Fidelity National, the biggest title insurer, basically said that it’s business as usual for them as far as foreclosures– they don’t see this as a big source of title claims, they’re saying that if these bad docs cause foreclosures to get thrown out, it will be on the banks, not them. Old Republic, which announced that it wasn’t going to insure any Ally/GMAC foreclosures two days ago, walked that back tonight, and now they told their agents that it’s business as usual except in Ally/GMAC’s list of 23 judicial foreclosure states. Even there, they aren’t shutting it down completely but are telling agents to consult with their underwriting counsel.

    I had seen your post several days ago about your conversation with the ex-title underwriter and his opinion that the title insurers would stop insuring title on foreclosures. I talked to my boss and friend, Robert Franco, who was a title agent for over a decade before becoming an attorney (he’s a heck of a foreclosure defender, just like you!) He basically predicted that your title underwriter friend would probably be wrong.

    Here are his reasons:

    First, is the volume of policies foreclosures generate (and the associated premiums). I didn’t think they would be willing to give up the revenue. In Ohio, preliminary judicial policies are required for most foreclosures. Many of the foreclosure firms have their own title company for this purpose and when you generate that kind of premium dollars, underwriters tend to get pretty lenient.

    Second, there is the general attitude of the underwriters toward title defects – insure over them and issue indemnity letters to anyone who asks for one (maybe a slight exaggeration, but it is too common).

    Third, I have my doubts that any of these affidavit issues will result in a homeowner getting a home back, particularly if purchased by a bona fide purchaser for value. Perhaps if the bank bought it back and still holds it, it would be a possibility. But, most likely, if it were sold to a BFP the court would probably award monetary damages to the wronged homeowner rather than take the home back for them.

    All said… I don’t think there is a great risk of loss on a title insurance policy in most cases. If the bank has to pay some homeowners that they improperly foreclosed on, I don’t think they would have a title claim because it would be the result of their own fraud.

    I think personally the pressure could be coming from investigations. Perhaps the Florida Attorney General’s office investigations are getting somewhere? I dunno… I’ve never seen more investigations started and less come out of it than in the past two years or so, so I’m skeptical there too, but it makes more sense to me that someone other than title insurers threatened to put the badge on Ally/GMAC. Once Ally/GMAC blinked, all the rest of the dominoes fell because the press got involved, and it was obvious that JPM, BofA etc. used know-nothing robosigners too.

  • mogle says:

    Matt, you’re awesome!

    Hearing on 30th here in common pleas court in Ohio. BAC HLS finally FOUND the original note after 6 months! Too bad it didn’t have any staples in it for the fraudulent allonge filed with the complaint and had an endorsement in blank from an employee of Countrywide long gone before the March 9th robo-signed mortgage assignment “together with note and indebtedness” from AWL to BAC HLS.

    3 months and no answers to 1st set of interrogatories. Judge gave them last chance to the 14th to avoid contempt.

    Found that the law firm representing BAC HLS in this foreclosure employs a “MERS VP”. I have documents of other law firms here doing the same.

    The QWR response from another BAC HLS attorney in another states reveals that another entity (not AWL) “owns” the note and BAC HLS is just the servicer.

    SOS and OAG both sending warnings and taking action.

    We have enough now. Filing counterclaim for fraud next week.

    From Ohio, thanks so much to the Florida crusaders!

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