Site for Free Markets and Free People

Wednesday, January 12, 2011

Many Mass. Homeowners Outraged by Supreme Foreclosure Ruling

As points out, there are many Massachusetts residents who bought foreclosed homes and now, because of a state Supreme Court ruling, no longer have clear title to their properties.

In fact, any homeowner in Massachusetts who purchased a foreclosed property from a bank over the past several years is likely in the middle of a conniption. These borrowers bought their properties in entirely good faith, and the vast majority have stayed current on their mortgages. Yet because the Massachusetts Supreme Court last week invalidated two foreclosures over basically paperwork issues, these post-foreclosure buyers no longer have clear title. At a minimum, they won’t be able to sell their properties any time soon. And conceivably—who knows how things work in Massachusetts these days?—they could lose them outright to the original, pre-foreclosure, delinquent borrowers. If this is what is supposed to pass as fair, I’m at a loss. . . .

If you thought the housing situation was messy in the past, you ain't seen nothing yet...