Illegal Foreclosures – Will they take your house away?
Hello welcome to Todd Miller TV. Today is the after Thanksgiving edition of the show, it’s the Friday after Thanksgiving. Here in the office, well everybody else is out recreating and getting it done today. I wanted to share with you something that I found out, you know, there’s been all this news about illegal foreclosures and what I wanted to do is talk about 2 things; 1 is, to define what that means and then 2, let’s talk about who and why people are stirring the pot about this; ’cause this is really what this is all about. Okay so, I was starter for the disclosure, I am not an attorney, have been to a lot of school, I do have an MBA, I do/I have a good general/understand the business and how things works so; What an illegal foreclosure is means it’s just any foreclosure that doesn’t follow the Law, That’s it! So, When you hear illegal foreclosures a lot of times you’d think of, you know, the bank just, person making their payment every month on time, and the bank says “Forget it, we’re just gonna go and take that house away. We’re gonna kick them out of the house, we’re just gonna foreclose and throw them out. And that’s sort of what you hear in your mind when hear illegal foreclosure, you think that they just did that and, I’m not saying that doesn’t happen but most of what happened when a person gets foreclosed is, it’s a very complex process, the state has put in place. They say you will do all this specific steps and there are some things in there that are maybe subject to some, you know, just somebody’s opinion, or technicality. So I’ll give you an example, Let’s say that your house has been foreclosed. And you didn’t make your payments for 2 years. And they filed the notice default, they posted a couple notes to Trustee Sales but they cancel ’em, then they have to file a notice of default because you can only do so many before you have to start the process over and they do that 2 or 3 times. So it’s been 2 years you haven’t made your payment and then the last time they do it they file a notice of default, they’re suppose to wait maybe 90 days, but let’s say it’s because of the weekend or something weird, they post the notice of Trustee Sale on the 89th day. Well technically they can’t foreclose because they miss the Notice of Trustee Sale minimum by a day. So here’s the scenario, that all happens, Notice of Trustee Sale, the house to sold goes back to the bank, So many buys it as a Bank owned home, couple of years later, the home owner knocks on their door, or the previous owner knocks on the door and says “Hey, I just realized that this house was illegally foreclosed, So I’m gonna go to a court ans ask a judge to throw you guys out of the house even though you pay the market value for the house” And as far as you know, that it was all done, there was title research done, and there was title insurance policy on it, and I’m gonna get the house back. And of course, attorneys would take that case because they would tell that person “Yes, you were illegally foreclosed on”, they will make a big deal about it, and then you know, this would go before judge and I just personally can imagine a judge throwing people out of the house in that case. And it’s just because like there was a piece of something wrong. You know, it’s important that legally that all this due process and everything is followed so people are treated fairly in everything and what happens is if like a piece of/you know, if a date is written wrong on a thing or somebody signs it wrong, or something like that, then all of the sudden it’s deemed illegal when in actuality, it’s valid. It’s following the Law, the attorneys are very up on this because they intentionally make the Law very complex so you’ll have to use their services if you need anything legal done. They don’t wanna give you a simple process, it has to be complex, so that you’ll have to hire them. So, that brings me then to my next point who’s stirring the pot? Well, it’s interesting when I see all the articles about illegal foreclosure. There’s always attorneys on the other side saying “We sit with people all the time and 90% of the people when we looked at their foreclosure it was done illegally.” Because there may have been 5 sales of that property to different mortgage bank security trust and things like that. It maybe,they didn’t like sign off on it with a certain time frame or whatever. So the new person who own has the notes “Says, look I don’t care about what the previous people did, I hold the note, I’m foreclosing on the house ’cause it’s a default, they foreclose on it.” but that chain isn’t maybe there. Which is why we have title insurance. So anyway, I think a lot of people’s stirring the pot on this. People intended benefit form this legally. They found this interesting nitch where there’s a lot of foreclosure happening banks frankly aren’t maybe designed to do that much exact paperwork. See all the time even in my business, you know even agents when they fill up purchase agreements, they make mistakes on them sometimes. And when we got the offers and we look “hey, there’s a mistake” I can’t imagine like a couple years later, coming back “well you made a mistake, technically filling it’s purchase agreement, you said this, so you really don’t own the house, so were gonna take it back even though you paid the money for it” Anyway, when you hear illegal foreclosures I just want you to keep that in your mind that that doesn’t thing it was any major thing, it could be a very minor paperwork thing that was done, and that the Government is very specific, if you’ve probably seen this if you’ve ever gone to the post office and tried to get mail box keys for your house ans they want very specific things, if you don’t have exactly what they want or there’s like a number wrong or something they go “forget it, we’re not gonna give you your stuff” So, Anyway, is just wanted to share that with you. I thought it was interesting. So, that is my update for today and hope to see you on another video. Thanks!