Lowell Deeds

The latest on real estate recordings and new technology from the Middlesex North Registry of Deeds in Lowell

February 29, 2008

Thwarting Foreclosures

by @ 12:55 pm. Filed under Real Estate

A Herald story from Wednesday reported that a Superior Court judge has issued a temporary injunction against Fremont Mortgage which prohibits the big sub-prime lender from pursuing foreclosure activity for 90 days. To paraphrase the ruling of Judge Ralph Gants, the mortgage companies were willing partners in getting us into this mess; they should continue to be partners in solving it. While this ruling certainly does not effect all mortgages, it might set a precedent for judicial intervention in other cases.

Another Herald article discussed how homeowners facing foreclosure are delaying the proceedings by forcing the foreclosing lender to produce proof that it actually holds the mortgage. Proof would typically be an assignment of mortgage recorded at the registry of deeds. In the hyper-active refinancing and sales boom of several years ago, those handling the paperwork for these transactions sunk to new levels of sloppiness to keep up with the volume. At one point at this registry, we were mailing back one out of every four documents we received by mail for one error or another. Now, this lax legal work may catch up with lenders, because as loans go into foreclosure, it’s inevitable that the supporting documentation is scrutinized very closely.

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