Forclosure Gate - title issues with foreclosure purchases

[30ashopper]

Furthermore, the 250,000 or so people who bought their foreclosed home in Q2 (not to mention the millions over the past two years) will be sweating bullets that the previous owner doesn?t come back and demand a cease and decist on the transactions, as well as a full unwind and give up of all equity rights until the rightful owner of the underlying debt is identified. And since one doesn?t exist, hundreds of thousands, if not millions of foreclosure transactions will suddenly become null and void, and nobody will be paying any mortgage on them, resulting in billions of incremental writedowns.

Are The 250,000 Foreclosure Sales From Q2 About To Be Reversed, As Fitch Prepares To Downgrade Foreclosure Fraud Companies | Phil?s Stock World


Your Cheat Sheet to the Foreclosure Crisis (IYR) | Wall St. Cheat Sheet


Yuck, this whole thing is about to get far far worse. Now new owners are at risk.

 

[SHELLY]

Are The 250,000 Foreclosure Sales From Q2 About To Be Reversed, As Fitch Prepares To Downgrade Foreclosure Fraud Companies | Phil?s Stock World


Your Cheat Sheet to the Foreclosure Crisis (IYR) | Wall St. Cheat Sheet


Yuck, this whole thing is about to get far far worse. Now new owners are at risk.

It won't be bad at all....if we pretend that the boom never happened in the first place.

.

 

[30ashopper]

Potential side effects of this:

1) foreclosure listing will get yanked from the market
2) buyers will back way from the market
3) title insurance companies may have to take major losses, potentially go belly up
4) title transactions on foreclosure sales will get rolled back, new owners will find themselves without ownership
5) banks will have to re-foreclose on properties, filing correct paperwork this time.
6) bank assets take a another major hit

We hit the rewind button, it's 2008 all over again!

 

[30ashopper]

It won't be bad at all....if we pretend that the boom never happened in the first place.

.

You know more about this stuff than I do Shelly. What fall out do you see?

 

[SHELLY]

You know more about this stuff than I do Shelly. What fall out do you see?

It will get "fixed" somehow by legislation; the foreclosures will continue; the banks will be forgiven (again) for their misdeeds.

In the meantime, buyers who looked like they might be coming off the fence will shimmy back up and start asking more questions other than if the property they're buying has SS and GCTs.

Not being able to get title insurance should (nay, will) definitely be a deal-breaker for perspective buyers. I pity the folks who live in "Foreclosurevilles" as they've gotta wait this mess out as their property values continue to go into the ditch.

Now that lawyer$ have become involved, and profiting handsomely, (think BP but with major banks) there's no telling how long this will drag on until the government finally puts its foot down and says "enough!"

NAR was right when they said there would be a "soft landing" for the housing sector--what they failed to say was that landing would be in a steaming pile of $h*t.

.