Another Real Estate Time Bomb: Unsellable Vacant Homes?
From a NYC reader via e-mail:
My good friend is a real estate broker in Westchester/Dutchess County. He said he is seeing a real problem growing with title insurance. He said a large number of the REO properties banks try to get him to sell cannot close because of title problems. He’s worried about the growing number of vacant homes which may be impossible to sell.
For those who don’t know the New York area, Westchester County is full of wealthy bedroom communities like Scarsdale; Dutchess County is further out but well off by national standards. The unemployment rate for the state is better than the national average, and with New York famously having the longest foreclosure clearing time in the US (as in the number of defaulted homes versus throughput rates in the courts), the state is not a prime candidate for a huge inventory of unsold homes.
Put more simply, if you are seeing a significant overhang of unsold, and perhaps more important, unsellable, houses in two relatively well off counties in New York, it’s likely that the same problem exists elsewhere.
Check out the rest here…
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One can get quite the education by reading what’s being left as comments over at livinglies.com.
The fraud is changing into new ways of making wealth off of real estate in the United States. The
wealth being extracted is leaving the country permanently. Where? Think of pre war Germany and
Austria as a good start.
so where is obama in all this to stop these foreclsoure i feel a sense of ‘we are on our own” in this and that is unconstitutional. all these homes are unsellable then florida is ocmitting fraud again. foreclsoed homes are being sold by the thousands. no problem wit title companies here. remmeber they are in on the fraud
lies, I am afraid there are traitors in our midst. These politicians don’t care about us. They are working for the enemy, the New World Order. They should all be forced to resign because there is an UNCONSTITUTIONAL CONFLICT OF INTEREST working inside of our own Government and Judiciary….
Oh yes….I just can’t figure out why all of this is taking so LONG! If the entity that foreclosed on you didn’t have legal title in the first place, or changed title companies, (as in my situation), even if they sell the property, the people who bought the place will not have legal title to it either. makes me feel like driving out to Az. and knocking on the door and tell the people “I’m sorry to do this to you, but legally, this is still my home. You can pay me rent, or you have 30-90 days to vacate”. A little scary tho with Arizona gun laws. Ha!
Sadly, there are tons of real estate scams still going around. It is also interesting that Apple just released an iPhone app called Scam Detector, which exposes 350 or so of the most popular scams in the world – lots of them are real estate scams. It is worth checking it out, if you have an iPhone. There is their info: http://www.scam-detector.com.
broken title is a large part in explaining why one of the biggest real estate firms in manhattan
just sent out color photo postcards of RENTALS and not sales for the first time ever in memory.
you CANNOT sell your home at ANY PRICE when the title is broken!
Sounds like Adverse Possession is the only way to restore the clean title – So instead of leaving them vacant start squatting – pay the property taxes, and wait for the legally appropriate time to file for clean title.
After Hurricane Andrew, a disclosure was created as mandatory to attach to both real estate listing and sales contracts…the addendum had to disclose whether the property listed for sale was damaged by the hurricane and to what extent of damage or percentage of damage, etc….to protect the buyers.
I believe this should also be mandatory for the banks and Realtors to disclose to potential buyers regarding foreclosed homes….your thoughts…
TIP of ICEBERG: Are we watching a major chain of title deception being conducted in plain sight and everyone just fails to recognize motivation behind the tactic? Are we looking at mortgage-laundering?
Example:
REO listing carries a caveat or note in the listing that could be revealing a problem without stating the obvious. (some REO listings, not all contain the following provision)
Realtor’s listing will say something like “Must qualify through B of A or —–(various lenders)” or offer free appraisal or closings costs, IF the loan goes through a named lender. Some are even being sold through bidding where preference is given to bidders who are going through a specific institution for their loan with others excluded, never knowing why they were excluded. Several offers tendered within a specified time in response to a low liquidation price teaser list price. At close of bidding, someone (hard to know who as listing agents have only an AG or contact) chooses the contract offer ultimately accepted. Other bidders are unaware of who or what reason their bid was rejected.
WOW-Suddenly, it becomes clear how these houses with questionable titles are being transferred or mainstreamed into the system. The lender forecloses knowing he can’t provide the appropriate title chain but to control transfer he finds a qualified buyer to go back through the same bank for approval, taking back the loan into their own portfolio until the title issue is cleared within a new transaction. Could those property listings that advertise “must be approved by- – – – ” are loans in which the chain is flawed or broken? If this is true, new itle insurance would need to be altered or controlled in the new sales transaction. Perhaps another instance of fraud?
Someone with the ability to track these deals and how they are being handled and whether they have title insurance written on them, if held within the bank’s portfolio could help uncover a major laundering tactic. Are they sweeping their junk under the table in plain sight? Particularly on high end houses? $800K houses that now sell as REOs into trusts, etc. for $450K. It is REAL, right here in River City.
Another major expose’ could be revealed on 60 minutes??????? Need confirmation.
Foreclosure extinguishes all liens. That is to say, RECORDED LIENS, LIENS OF RECORD. Where liens are not recorded, THEY ARE NOT EXTINGUISHED! Thus a bank ‘taking ‘back its loan’ until until the \title issue within a new transaction’ is DOUBLE-SPEAK! Their is NO title chain that can be other then a fraud. It may take years for the other loans to surface, but eventually, other creditors will show up. IT IS WORSE THEN YOU THINK! IMHO
Brilliant…and true…
Yes talk to tennessee, they are trying to cover up their fraud. The reason they want you to sell your house is because your signature creates a new chain of title. A friend of mine has the same pretender lender as I do. He got sick and tired of the loan mod run around he was getting from PHH Mortgage and told them, I am retiring and moving to the Bahamas. PHH told him NO!!! You can’t do that!! We want you to sell your house!!! Well, PHH did file a frauclosure on him and when push came to shove they did not have the note to fraudclose……CNBC reported a few weeks ago that most of these foreclosures are going to become rentals……There is alot of deception…. The first homeowners to go were those who could find jobs and had no income..THE POOREST AND THE WEAKEST,,…The crooks figured in most of those cases those homeowners would not be back for their stolen homes..SOME RETURNED TO CLAIM THEIR STOLEN PROPERTY, MANY DID NOT…They bulldozed some to destroy liability for taxes….Vacant land, cheaper taxes…..My brother-in-law was illegally evicted from his townhouse by Wells Fargo two years ago…I told him they stole it…..I had him call one of those free attorneys for help because he does not make alot of money…BIG MISTAKE!!!!! The attorney treated him like shit and ripped him like it was the ROMAN INQUISITON.. .Questions like, Do you have income? What do you mean YOU DON’T THINK YOU OWE A MORTGAGE???? YOU HAVE THE DEED, THE BANK DOES NOT NEED YOUR DEED TO FORECLOSE!!!!! I told him to hang up…. a few minutes later the FREE ATTORNEY called him back on a cell phone and told him, You must be one of the “FEW MISTAKES” that were made and told him to hire a private attorney…PROOF THE FREE LAWYERS ARE WORKING FOR THE BANKS…. That week my brother-in-law found out that after that phone call THE CROOKS WENT AND GOT GRANTED A SHERIFFS DEED….MY BROTHER-IN-LAW NEVER HAD A DAY IN COURT…… WELLS FARGO STOLE HIS HO– USE THROUGH A REAL ESTATE AGENT WHOSE NAME NOW APPEARS ON HIS PUBLIC RECORDINGS AS GRANTEE…..THEY _ERASED_ ALL_ OF_ HIS_ PUBLIC _RECORDS…………..I KID YOU NOT…..THIS IS A CRIME SPREE SO MASSIVE THAT IT IS BEYOND COMPREHENSION………………..MAKE ALOT OF COPIES OF EVERYTHING…..
if people would read the disclaimer (“mice type” as it is called because it’s usually very tiny text) on the foreclosure sales and auctions from REOs, it says
that the buyer assumes any risk and liability if the title is not clear.
Fury, they are even telling buyer beware, do not buy a fraudclosure at auction without consulting an attorney……The risk does exist that the homeowner comes back to claim his stolen house….and I don’t think they outweigh any benefits whatsoever…..These people are gaming and gambling on buying fraudclosures, the stolen homes of the American people….and hoping they don’t get caught….This is just more scamming and gambling by all involved…
What’s the shock! We here…..who are walking the walk……..have known for a long time this would happen and it is going to get much worse! I grew up in Westchester county, N.Y. and it is very wealthy……..but now the prime is failing….check out the charts. Many more wealthy areas will fail shortly….it is the caveat for homeowners ……..the thing the banksters cannot hide…….empty homes. Wake up America…..your country is being stolen……right out from under you!
With no chain of Title and Note, there is NO ability to sell or BUY! WAKE UP THE PUBLIC! THEN THEY WILL UNDERSTAND! THEN THEY WILL DEMAND………!
Just had to weigh in on this. It is critical that those of us who post on here try to:
a. be careful of the way we state things if we have any professional connection
b. readers take into account that most posters are regular consumers like yourself and therefore, while people mean well and are trying to help each other, it is critical that you fully understand and research things which are stated in posts.
I am writing specifically because of the statement above which says you can’t sell or BUY anything with no chain of Title or Note.
The truth is that you can. and many, many thousands of people have. What you CAN”T do is provide a clear chain of title. YET you can
BUY –without a clear chain–IF you are a consumer who does not understand the need for proof of
a clear chain of title
–IF you accept the terms of the contract from the REO–with the mice print–\
which says you are buying the house at your own risk
–IF you believe that because a bank is making the loan, and a REALTOR or
attorney is involved that your interests are being protected
— IF you believe that because you get ‘a title policy’ that you are covered with-
out understanding that there are TYPES of title coverage–one type protects
the lender/one type protects YOU the buyer SOME offer little to no
protection at all.
–IF you have buyer title coverage but chain of title issues are EXCLUDED
you are still up **** creek
You can SELL a house without clear title–
— If you are an entity (Fannie Mae, HUD, Bank, etc)
— IF you have disclosed and the buyer has signed indicated they understood
they were getting a jacked up deed (sheriff’s , special warranty, trustee’s
deed) which have no warranties–by anyone
–IF you can find someone who is looking at the killing they are making on
the deal who has not been paying attention to the development of this
mess over the past few years.
I am semi-retired and taking care of my mother now.
All I ever needed to learn about foreclosure fraud, title misrepresentation, and HOW to sell things with unclear title I learned as a FORMER FANNIE MAE BROKER FOR 2 1/2 YEARS.
Yeah Mildred and the fact is that can come back and bite the purchaser in the ass….Do your research……Did you hear or read on this website how the FBI called a home purchaser on the phone and told the purchaser of a fraudclosure that he will soon have to leave because the home was sold to him on a CLOUDY TITLE AND THE PREVIOUS OWNER WAS GOING TO BE GETTING HIS HOME BACK…….IF YOU WANT TO CALL ME OUT YOU BETTER HAVE THE CAHONES TO DO IT DIRECTLY TO ME…..DON’T BE EVASIVE WITH YOUR THE COMMENT ABOVE REMARK……….FORECLOSURE COMPLAINTS BROUGHT ON CLOUDY TITLE ARE ALSO ILLEGAL…THE TRUTH IS MILDREAD, PEOPLE DO NOT KNOW THEIR RIGHTS OR THE LAWS THAT HAVE BEEN PUT IN PLACE TO PROTECT THEM……..THE TRUTH IS BEING HIDDEN FROM THE PUBLIC….AND THAT HAS RESULTED IN FEDERAL CRIMES BEING ALLOWED BY JUDGES TO BE COMMITTED ON THE AMERICAN PEOPLE IN CIVIL COURTS………….
MILDREAD, TELL YOUR OWNERS WE THE PEOPLE ARE COMING TO GET THEM…….AND DON’T GIVE ME YOUR SEMI RETIRED BULLSHIT,,,THE ENTIRE MORTGAGE INDUSTRY HAS BEEN DESTROYED BY ALL OF THE TBTF MORTGAGE FRAUD PONZI SCHEME…
GO BACK TO SCHOOL……………..IF YOU BELIEVE FANNIE MAE YOU ARE LOST…….YES THEY CAN STEAL AND SELL HOMES ON CLOUDY FRAUDULENT TITLES IF WE LET THEM…………………THAT DOES NOT MAKE IT LEGAL…….IT IS STILL A CRIME…FRAUD IS FRAUD……
MILDREAD WATKINS, IF YOU ARE AN ENTITY, LIKE FANNIE OR BOFA YOU CAN STEAL HOMES FROM PEOPLE ONLY IF THE PEOPLE DO NOT KNOW THEIR RIGHTS OR THE LAWS THAT HAVE BEEN PUT IN PLACE TO PROTECT THEM….I NEVER LEAD ANYONE TO BELIEVE OTHERWISE….THEY DID IT TO MY BROTHER-IN-LAW BUT THAT DOES NOT MAKE WHAT THEY DID LEGAL………..I AM CLEARLY WARNING PEOPLE YES, THEY CAN STEAL YOUR HOME ILLEGALLY FOR AN UNSECURED DEBT IF WE ALLOW THEM TO…..AND THE PEOPLE WHO HAVE HAD THEIR HOMES STOLEN FROM AND SOLD FROM UNDERNEATH THEM ILLEGALY CAN STILL COME BACK AND FIGHT FOR THEIR STOLEN HOMES AND MONETARY DAMAGES……….THIS IS THE UNITED STATES OF AMERICA, NOT NAZI GERMANY……………………….
You are correct, disclosure is everything. The rest is the small print above where you sign your name on a contract. A contract binds, assumes that you read the small print and agreed to it. Your closing attorney does not read it to you at the closing. He probably didn’t know what lay ahead anyway. Almost everyone connected to this fiasco is part of the problem, some innocently and others with intent to defraud. Even people in the real estate business did not comprehend what could happen through the system the banks set up in securitized products. It was a sweet deal for them. They could bundle up the loans, increasingly junked up with subprime trash, and pass them off to investors, retaining servicing, holding nothing in their own portfolio of risk. They retained servicing rights and fees, etc. Talk about having your cake and eat it too!
If we had seen it coming we might have known what to avoid but people don’t tell you their scams. Banks handed money to the players, loan originators and morgage brokers got rich during this period. The banks didn’t print on closing documents, “this contract is designed to remove your rights and confiscate your home.”
Contract small print is biting many of us now in discovering MERS is our trustee and we can’t discover who owns the rights to foreclose. Not even the law is consistent on that point. One state recognizes MERS, another may not. MERS is a sham that should be exposed for what it is, just a database to shield the banks, accepting no responsibility or charges. People were set up for failure on the front end, duped in their own ignorance. Had we known this would be the massive problem we have today, things may have been different. Even the banks, I venture to surmise, would have done things differently.
I was a little young when the S & L crash happened-not around for the great depression but wasn’t it all bad real estate loans by banks and S & Ls? Didn’t Greenspan say recently that we would visit this type failure again in the future, maybe 20-30 years from now? It skips a generation as people forget how innovative the banks are at making money off of the ignorant and poor. Maybe the banks have met their Waterloo this time around or maybe they will slither away to play another day!
Mildread, the ponzi schmers, like Fannie and Freddie are PROFESSIONAL SCAMMERS AND SWINDLERS…….THERE IS ANOTHER NAME FOR THAT PROFESSION AND THOSE WHO DO THESE THINGS, THEY ARE A CRIME SYNDICATE, COMMITTING CRIMES LIKE USING AN “ENTERPRISE” WHO BY — USE OF “RACKETEERING ACTIVITY” HAS OBTAINED AND IS TRYING TO COLLECT AN “UNLAWFUL DEBT” AQUIRED BY LOAN SHARKING OR ILLEGAL GAMBLING ACTIVITIES AS WELL AS SECURITIES FRAUD/FINANCIAL FRAUD .. THEY ARE WHITE COLLAR CRIMINALS COMMITTING CRIMES PROSECUTABLE UNDER RICO.
In truth, arent ALL homes unsellable? if they are a foreclosure OR a short sale? With no absolute record of who owns the loan AND the deed? Who in their right mind would buy any house today, if they were informed! This another disaster in the making!
With no chain of Title and Note, there is ability top sell or BUY! WAKE UP THE PUBLIC! THEN THEY WILL UNDERSTAND! THEN THEY WILL DEMAND………!
There is always a sucker who will pay $1 for $5 grab bag worth of goods.
Case in point: house sold new in 2002 for $800K, REO sale is $400K. People will take a chance on something like that. Gamblers everywhere. Most people losing their homes have no money left to fight against the system to reclaim their house. That is why the only chance we have is to sway public opinion, stir people up, make them angry enough to demand responsibility from the banks who are destroying their property values even if they are not in default..