Well you hit the nail on the head there. Title companies are not writing title insurance on many foreclosures at the moment and without title, no one in their right mind will buy a foreclosure. Someone asked, "is what the banks are doing here right", referring to "robo-signing". IMHO no. The banks have behaved very badly throughout this whole mess. Many are forecasting more doom and gloom because of this, personally I don't see it. It gives politicians someone else to blame and gives talking heads on TV something else to talk about, but at the end of the day, the song remains the same.
This is jem. I know the lawyer telling people to move back in. I spoke with him on the phone a few months ago. My website was one of the very first talking about using a RESPA request to gain leverage with the banks in short sale and loan workout negotiations. Mr. Pines lectures on the litigation route. First send the RESPA request asking the bank to prove they have the rights of ownership or servicing. they almost never provide the proof. After that he likes to sue them. I prefer to gain a loan workout result. I suspect these are clients who do not litigate to conclusion, but have proof the banks violated Federal law by not providing a response under RESPA. Most foreclosures in CA are non judicial. There is a very real problem with a non judicial foreclosure in that property is taken without due process. Due process is exactly what is needed to determine if the banks have standing to take the property. (can they prove to a court they are the owner or the servicer of the loan.) This is going to take years and years to unwind properly if clients start paying lawyers to jack up these lenders. If you think the lenders are innocent businessmen you have to learn more about MERS and why it was designed. MERS in itself is pretty close to a criminal fraud. by the way if the investors in these loans get stuck with losses because MERS proves to be a sham.... the wall street banks and our major banks will be left holding the bag.