Posts Tagged RealtyTrac

Utah Real Estate and Mortgage News

Utah ranked 6th in foreclosures nationwide

According to RealtyTrac Inc., Utah ranked sixth nationally in foreclosures during the third quarter of 2010.  According to their figures 1 in every 88 homes in Utah were in some state of the foreclosure process during this time compared to the national average of 1 in every 129 homes.

But it’s not all that bleak.  Utah traditionally lags behind the rest of the nation economically so we’re now at the same point everywhere else was over a year ago, and nationally the foreclosure rate was down 21% from the third quarter of 2009.  So it’s getting better all the way around.

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Bought a foreclosure? Title insurance could save you

With the current allegations of foreclosure fraud on the bank and loan servicer levels can you be really sure you own that sweet deal of a foreclosure you just bought?

The issue at hand here is “who really owns the home you just bought?”  It turns-out that in some cases banks have committed fraud in the foreclosure process by manufacturing missing documents needed to foreclose on a home. Documents like the original Note and other missing loan documents, forging peoples signatures in the process.

Loan servicing rights can change companies several times throughout a loan’s life.  Every time it does a hard copy of the original Note (you have a copy in your closing documents the title company gave you) is supposed to go to the new servicer.

It rarely did.

Now, banks are unsure who really owns the loan and thus who has the right to foreclose on the property.

Although I’m very outspoken about the reasons behind the current economic crises and foreclosures, I do believe that if someone is in violation of their contract with the bank to repay the loan that the bank has the right to foreclose on them. But, this has to be done with due process of law. The XIV Amendment insures us of this right.  This is a whole other topic, though.

The point here is, remember that title insurance policy that was part of your closing costs? That $600 to $1,500 charge? Well that policy is what will protect your right to the house you just bought.  Title insurance insures past events on the property.  So even if the title wasn’t clear with a previous lender at the time you bought the house, you’re not going to lose your home.

All lenders require a title insurance policy be purchased when you buy or refinance a home for that reason. It protects their interest just as it protects yours. But if you bought the property with cash and didn’t opt to pay for title insurance, than you may have reason to be concerned because you may not own the property because the bank you bought it from may not have owned it and thus had the right to sell it to you, and there is no insurance to pay-out damages to the rightful holder of the Note.

The moral of the story? Title insurance is cheap protection on your property. Always get it.

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BofA can resume Utah foreclosure sales | The Salt Lake Tribune

A federal judge on Friday dissolved a court order that had stopped one of the country’s largest banks from selling foreclosed homes in Utah.

U.S. District Court Judge Clark Waddoups, after hearing legal arguments Thursday, has granted a Bank of America request to cancel the preliminary injunction against its trustee sales in the state.

Waddoups’ decision wipes out the injunction issued May 22 by 5th District Judge James L. Shumate. That order had halted hundreds of Utah foreclosure sales by Bank of America and its subsidiary, ReconTrust.

The injunction was issued in a case brought by St. George resident Peni Cox, who lost her home to foreclosure earlier this year.

Bank of America said Friday it was pleased with the court’s ruling.

In a statement, the bank said its priority was to help customers keep their homes. Officials pointed to what they characterize as extensive efforts, since the housing crisis worsened in 2008, to modify troubled loans.

“But unfortunately, due to ongoing recessionary impacts, for many customers a transition to alternative housing is the only option,’’ the bank’s statement said. “When that happens, we work in compliance with the governing laws to facilitate that transition with the least amount of difficulty for the borrower and the affected community.’’

ReconTrust, BofA’s foreclosure arm, says on its website that it is currently pursuing at least 977 foreclosures in Utah. Records from RealtyTrac, which tracks U.S. foreclosures, indicate that ReconTrust, Bank of America and its loan servicing company, BAC Home Loan Services, between them sold off at least 310 foreclosed homes in Utah between July 2008 and March 2010.

Lawyers for Cox had argued that Bank of America and ReconTrust were ineligible to conduct trustee sales because ReconTrust did not register as a business entity with the Utah Department of Commerce.

Judge Waddoups also turned down a motion by Cox’s attorney, J. Christian Barlow, of St. George, to have the case transferred back to state courts. The issue of state versus federal jurisdiction was a major issue of contention Thursday. Bank lawyers argued they were governed by the federal National Bank Act and not state law.

Barlow did not return a call seeking comment Friday.

In his order, rendered early Friday afternoon, Waddoups said he would file a memorandum shortly explaining his legal reasoning.

BofA can resume Utah foreclosure sales | The Salt Lake Tribune.

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