When a judge issues a summary judgment (i.e. the house is foreclosed), any party (typically the one foreclosed) only has a right to monetary damages if the foreclosure action is subsequently found lacking, invalid, improper, etc. The language goes one step further: the summary judgment will deem the house’s title forever clear.

So let’s say your house is foreclosed illegally (not that that would ever happen), you can never get your house back. Let’s say an investor who thought they were investing in your house but the servicer, bank, whoever did not securitize it properly, they can never lay a claim that results in their getting their investment back: the physical, “real property”.

In essence, this bill will create law that will forever clear the title of a foreclosed home from any past wrong-doing ever involved with that “real property”. Any previous owners (borrowers, investors, etc.) will only be entitled to some money IF another court rules there were past illegalities involving servicing, chain of title, standing, robo-signing, etc. involving the foreclosed house.

This is our elected officials’ way of saying we do not care if you were screwed by a bank or servicer that results in a foreclosure. And if you were screwed, legally you will only be entitled to a few dollars as compensation. This is kind of like what the state AG settlement will (supposedly) do by “giving” victims $1,800 if you were illegally foreclosed. And our elected officials go one step further and unilaterally (and illegally) deem the title clear.

Lawyers: is this an accurate interpretation?