A home “Free and Clear” of the mortgages that encumber it is sort of the Holy Grail in this foreclosure war. There have been very few, if any, instances of these judgments being awarded to homeowners, but that should change in years to come as our courts across the country finally come to grips with the fact that the pretender lender and phantom plaintiff paradigms are at odds with the fundamentals of hundreds of years of American real property law.
Amid the securitization frenzy of the last decade, the fact that the morphed, Frankenstein-like mortgage that was developed is out of step with existing laws was just ignored. This mess has been compounded throughout the collective madness that is Fraudclosuregate, but there are increasingly going to be courts that will follow the existing laws…..
Read the article below….
A Utah court case in which the owner of a Draper townhouse got clear title to the property, even though he still owed $132,000 on it, raises new legal and financial questions about a property-records database created by mortgage bankers.
The award of a title free of liens means that whoever owns the promissory note on the Draper property “” likely a group of faraway investors “” no longer has the right to foreclose to collect on a delinquent loan. Indeed, the townhouse owner has sold the property and kept the money. Those who own the promissory note probably don’t even know what occurred.
Decisions such as the one 3rd District Judge Glen Iwasaki handed down in the Draper case could have a big impact as the state wends its way through hundreds of lawsuits involving foreclosures, loans on properties for more than they’re worth and predatory lending practices that led Utahns to lose their homes as the real-estate bubble burst.
More below….
