Ibanez Foreclosure Case Heading To Massachusetts High Court?

by Rich Vetstein on February 22, 2010 · 3 comments

in Foreclosure, Massachusetts Real Estate Law, Mortgage Crisis, Title Insurance

Update (3/24/10): SJC Accepts Ibanez Case
For those of you following the controversial U.S. Bank v. Ibanez case, which invalidated potentially thousands of foreclosures across the state, both sides last week asked the Massachusetts Supreme Judicial Court to take the case — as I originally predicted. The SJC’s acceptance of the case would cut months to years off the normal appellate process. This would be great news for everyone eagerly awaiting a final decision.

Click here for Ibanez’s petition to the SJC. Click here for my post on the first ruling and here for my post on the second ruling in the Ibanez case.

The SJC should decide whether to take the case within 30 days or so, and I predict they will take it on. However, I still think the SJC will ultimately affirm Judge Long’s ruling against foreclosing lenders, a bad decision from a title and conveyancing standpoint in my view.

Meanwhile, in the aftermath of Ibanez, some lenders are re-doing foreclosures and some are just waiting it out. Most title insurance companies are unwilling to touch an Ibanez afflicted property with a ten foot pole.

I recently assisted a buyer of a foreclosed property who was initially rejected by two title insurers. We fortunately convinced one title company to insure over an Ibanez issue, so the client could close. But I have another client who is stuck, and we’re trying to track down the original owner of the property to obtain a deed. It’s a tough situation all around.

  • Pingback: Ibanez Update: Massachusetts Land Court Decision Invalidates Foreclosures Based On Post-Sale Assignments | The Massachusetts Real Estate Law Blog

  • Randy

    Thank you for your great coverage and commentary on all things to do with Mass. real estate law. Your blog is definitely the go-to site on this subject.
    I have a question re the Ibanez situation:

    Did the lender(s) in the Ibanez case also submit a brief petitioning the SJC to take the case? If so, where could I read it?

    Thank you.

    • http://www.vetsteinlawgroup.com Richard D. Vetstein, Esq.

      Randy, thanks so much for the nice words!

      The lenders did submit a brief to the SJC and I’ve asked their attorneys for a copy, but unfortunately they haven’t provided me with one yet. Unfortunately, it’s not online.

      Best regard, Richard D. Vetstein, Esq.

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