At issue is one sentence in the council’s legislation:

“Each foreclosure sale in violation of this act shall be void.”

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District effort to help distressed homeowners could halt foreclosure sales

A District effort to help distressed homeowners threatens to bring a halt to the sale of foreclosed properties in the city, depress home prices and cast new uncertainty on the local housing market.

The District implemented regulations in May requiring lenders to enter into mediation with a homeowner before foreclosing on a home. But now, two large title insurers, which have about 80 percent of the D.C. market share, have stopped insuring the sale of foreclosed properties, saying the law makes it too risky.

Without title insurance, obtaining a home loan is extremely difficult. The policy protects mortgage lenders from challenges to the title of a property. The problems could move beyond the foreclosure market to all home sales if lenders decide that any District home that could potentially fall into delinquency would face a similar problem down the road, according to industry officials and local lawyers. If these foreclosed properties linger on the market, unable to be sold, they could bring down neighborhood prices, they said.

These laws “are in­cred­ibly destructive economically. They’re really creating a dead zone in the housing market,” said Kurt Pfotenhauer, chief executive of the American Land Title Association, an industry group.

You can check out the rest of this report here…

But first…

Kurt Pfotenhauer… Now where have I heard that name before?

Oh yea, from MERSCORP, Inc. Board of Directors…

Hey Kurt, I think you have it backwards. You and your strawman company (MERS) “are in­cred­ibly destructive economically.”

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4closureFraud.org