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.
Wednesday, May 03, 2017
Title Search Error, Missed Lien: Despite Making Prompt House Payments On His Own Loan, Utah Resident Finds Himself Facing Foreclosure On Prior Owner's Unsatisfied Mortgage Eight Years After Home Purchase, Then Finds Himself Forced To Hire Lawyer & Complain To Local Media Consumer Troubleshooter To Pressure Title Insurer To Finally Fix Screw-Up
In West Jordan, Utah, KUTV-TV Channel 2 reports:
Clint Lowry's has owned his West Jordan home for eight years.
He calls it his “dream house,” but last summer, his he was facing a nightmare. Someone slapped a notice to his door that his home was facing foreclosure and was about to be sold to the highest bidder. "They are, basically, going to throw me and my family out on the street," he said.
Lowry makes all of his mortgage payments and his credit report shows no indication he is behind.
So, why is he on the verge of losing his home?
It turns out, the home is being foreclosed over a debt owed by the guy who owned the home before him. "Because of this guy's 2006 debt, 10 years later, they're coming after me for his debt for the original owner," Lowry said.
Desperate to save his home, Lowry asked if he could pay off that debt. He was told, no. In fact, because the debt isn't Lowry’s, the lender won't even tell him how much is owed.
Lowry also filed a claim with his title insurance but, after several months, he said they haven’t stepped up to resolve the problem.
"I'm pissed!” he said. “I'm emotional. I don't know what to do. I'm losing everything I've worked for -- everything!"
Lowry decided it was time to [local media consumer troubleshooter] Get Gephardt.
When we reached out to Lowry’s title company to ask how this could have happened, a spokesperson told us they were working, "to obtain additional information," about the situation. In the meantime, good news for Lowry: "The previously scheduled foreclosure sale has been canceled,” a spokesperson wrote.
Lowry also hired attorney Lonn Litchfield who was able to pressure the title company and lender to stop the sale before it was too late. Litchfield said it happened with just in the nick of time.
"The foreclosure process takes four months and, about one week before that four months was over they finally said, ‘Oh, OK, I guess we do have [pay the claim]."
Lowry’s title company, Fidelity National Title, stated in an email they "met and even exceeded" their "obligations" under Lowry’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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