Senate Bill 1987, sponsored by Shrewsbury State Senator Michael Moore and the Massachusetts Land Title Association, would render clear and marketable to any title affected by a defective foreclosure arising out of the U.S. Bank v. Ibanez ruling. Estimates are that hundreds of innocent homeowners are affected by paperwork errors by foreclosure lenders, rending them unable to sell or refinance their homes.
After some favorable press in the Worcester Telegram and Boston Globe (to which I was happy to contribute), the Legislature passed the somewhat controversial bill at the midnight hour on July 31, the last night of the legislative session. The bill moves on to the Governor’s desk where housing advocates are still lobbying for rejection of the bill. The housing advocates’ arguments really show a complete lack of understanding of the title defect problem and its disasterous effect on the housing market. The bill preserves the right to challenge foreclosures and sue the banks, while helping innocent homeowners who are stuck with bad title. The upside of the bill is that more affordable homes can hit the real estate market. Isn’t that the goal of housing advocates rather than allow foreclosed homes to sit, blighted and decadent?
If you have been affected by an “Ibanez” title defect and otherwise support the bill, please contact the Governor’s Office through his email system:
Hopefully, I will have good news to report in the coming days…