Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Monday, March 14, 2016
Three Years After Real Estate Closing, Title Insurer Steps In, Pays Tab For Lien Search Screw-Up That Failed To Pick Up Existing Unpaid Mortgage; Unwitting Couple Was On Verge Of Losing Their Home When Error Discovered
In Tampa, Florida, WFLA-TV Channel 8 reports:
South Tampa homeowners who turned to 8 On Your Side on the verge of losing their house, are now keeping it – free and clear. Kris and Rebecca Kraft faced losing their home of three years, even though they’ve never missed a mortgage payment and never even did business with the bank trying to take the house.
Now, the Krafts title insurance company, Old Republic, is stepping in to help. The insurance policy will cover a title mixup that was missed when the Krafts bought their home.
The Krafts were getting nowhere in their quest for answers, until 8 On Your Side stepped in. “I think the news article got out there and maybe people started paying attention a little bit more,” Kris Kraft said. “We’re really thankful for Channel 8.”
***
Here’s a rundown of how thing unraveled: The house first sold in 2004. That buyer took out two mortgages, from different banks, and then lost the home in foreclosure in 2013. This is when things got weird.
The second mortgage holder beat the main mortgage holder in a race to foreclose. That bank sold the home to an investor who then flipped it to the Krafts.
No one caught the big title mistake. The home should have never been sold because of the clouded title. Then, in December 2015, the first mortgage holder, now Nationstar Bank, decided to foreclose on its lien and take the title. The mistake left both Nationstar and the Krafts claiming to own the title to the house.
Tampa title agent Galyn Lecher says this happens more than buyers realize and that this should be a lesson. Everything worked out well, Lecher said, because the Krafts have what’s called an owner’s title insurance policy.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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