NOT AUTHORIZED TO DO BUSINESS IN STATE? NO NON-JUDICIAL FORECLOSURE

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Ethan C. Nobles writes in First Arkansas News:

    • The U.S. Bankruptcy Court for the Eastern District of Arkansas, Jonesboro Division, ruled on a case at the end of September that may well have a substantial impact on non-judicial foreclosure proceedings in the state.
    • Before getting into that, it’s worth mentioning that Arkansas is one of about half of the state in the Union that allow non-judicial foreclosures. All states, of course, allow a creditor to foreclose on a home through the courts system, but not all of them have non-judicial procedures in place.
    • Non-judicial foreclosures are, indeed, less costly for lenders and expedited. For those reasons, the non-judicial foreclosure process has become the most popular route for lenders to take when they deem it necessary to take homes from defaulting borrowers.
    • According to companies dealing with foreclosures, the case of In Re Johnson (case nos. 3:10-bk-19119, 3:11-bk-10602 and 3:10-bk-16541 in the Eastern District of Arkansas, Jonesoboro Division) has caused the number of foreclosure proceedings to drop significantly since the court issued its ruling on Sept. 28.
    • In a nutshell, the court found that lenders not authorized to do business in Arkansas can’t properly utilize the state’s Statutory Foreclosure Act as codified in Ark. Code Ann. §§ 18-50-101 through 18-50-117.(1)
  • The aforementioned non-judicial foreclosure act requires all companies wanting to take back homes under that act must be authorized to do business in the state — a real problem for mortgage companies located out-of-state that are servicing loans paid on by Arkansans.

For more, see Bankruptcy court throws wrench in non-judicial foreclosure proceedings.

See also, Bankruptcy court ruling slows down foreclosure sales in state, indicating that national title insurers may be beginning to slam the brakes on Arkansas realty sales involving homes recently foreclosed in non-judicial proceedings.

For the court ruling, see In Re Johnson, Case Nos. 3:10-bk-19119, 3:11-bk-10602, 3:10-bk-16541 (Bankr. E.D. Ark., Jonesboro Div. September 28, 2011).

Editor’s Note: Buried in footnote 4 of the court ruling is this point of interest:

  • The Court notes that counsel for the Debtors argued that a determination that the statute had been violated would make any sale under the Statutory Foreclosure Act void ab initio. No property sales actually resulted from the foreclosure proceedings in these cases. The sole dispute in these cases is whether the foreclosure fees and costs incurred through use of Arkansas’ non-judicial foreclosure process are owed.

(1) According to the court:

  • Absent compliance with Ark. Code Ann. § 18-50-117, J.P. Morgan’s avenue for foreclosing on these properties was that of judicial foreclosure through the courts, not through Arkansas’ non-judicial foreclosure process.

The court also made this observation on the Arkansas statutory provisions authorizing the use of non-judicial foreclosure procedings in the state:

  • These statutory provisions must be strictly construed. See Robbins v. M.E.R.S., 2006 WL 3507464, at *1 (Ark. Ct. App. 2006) (“It is also true that the Arkansas Statutory Foreclosure Act, being in derogation of common law, must be strictly construed.”)

Posted by Home Equity Theft Reporter at 12:07 AM   E

 

9 Responses

  1. Here is good news! Hope it is the beginning of the end of the banksters and jail time. It would be a wonderful end to the year and a happy happy New Year.Iceland Arrests Former CEO Of Failed Bank The article is on web site “Mortgage Servicing Fraud” the one with FORUM on it.

  2. I agree with that one! Cash only no borrowing from banks. No credit cards. If every one went to cash, the banks would loose fast. Credit Unions are swamped with business cause of people changing from banks to credit unions. Yeah! Now they need to turn to cash and bartering as much as they are able to.

  3. Shelley,,,,,,,,,,,,,,

    because it’s all based on the debt monetary system………..

    no if’s ands or buts about about,,,,,,,,,,,and the laws are based on such…………

    it is all leverage, fractional reserve system of banks, given over to the banks, private or public companies no doubt………….

    when in fact if the government issued the quantity of money, and that would be actual coins or dollar bills or credit……….

    why there would be no fraud, and hidden is of it.

    Why doesn’t the Federal Reserve want to be audited? Why?

    It is all based on the monetary system. Which is debt based.

    Don’t borrow anymore. Get people to not borrow anymore from banks or credit cards or car loans or store loans.

    Go all cash.

  4. I thought fraud vitiates everything, how can they commit fraud get caught and be allowed to do it again under a different process? They filed fraud papers because we all know they can not prove they own the loan, and they committed fraud and fraud claims and fraud assignments to steal a house they know they had to shred the note when they cashed the note and turned it into stocks in order to avoid securities fraud. ( Double dipping with proof of it) instead they are trying to double dip with no material proof of it. This is why Fannie and Freddie can not accept notes. They know the notes would either be fraudulant fake notes or securities fraud if they were real and had not been shredded. They did not shred them to save space..

  5. Goodbye to Steven J. Baum PC, formerly freddie counsel in NY. I wish the employees well and hope you find work quickly. If any former employees are suffering from a verifiable hardship you may be able to obtain a loan modification. As for your employer, i hope many of the homeowners he illegally removed from their property pursue him personally for fraudulent affidavits and robo activity.

  6. I know I am an incorrigible optimist but the moral of this case is this: the same way that banks used “loopholes” to circumvent the laws as they had originally been intended, we, homeowners unfairly targeted, have this possibility as well.

    The only major difference thus far is that banks have been employing a huge staff of attorneys whose sole purpose is to find those loopholes and use them to banks’ interest.

    We learned from their example and we now can do exactly as they did. Banks counted on their wealth and they tried to ruin this country and stop it from fighting them. It isn’t working anymore.

    Banks have to be shut down and dismantled and their staff jailed.

    No two ways about it.

  7. FMR
    FEDERAL HOME LOANS CORP (Freddie & Fannie) AND FIDELITY.

    FFIEC.GOV
    NORWEST CORP RSSD ID 1120754
    March 1998 includes Fidelity National, RELS TITLE, ATI TITLE, ALTA LAND…

    TIME TO LOOK AT THE NATONWIDE NETWORK OF TITLE AGENTS, BROKERS, DISTRIBUTORS, AND DEALERS. TITLE COMMITMENT COMES FIRST (THEY ARE WITH FIDUCIARY?) TITLE AGENCY/AGENTS?

    Mortgage Loans ‘cannot’ go into REMIC without ‘LENDERS Policy’ and a ‘commitment’ issued during ‘closing’ and policy issued for new loan ‘assignment of mortgage’ servicing loan rights pending coveted default.

    (RELIANCE GROUP) COMMONWEALTH 1990 WITH TRANSAMERICA CORPORATION, SUBSIDAIRY BECAME TRANSNATION TITLE CO LATER PART OF LAND AMERICA

    Lawyers Title Corporation (LTC)
    formed as a holding company merge with the Reliance Group
    MERGER ‘1997’ LAND AMERICA

    In 2008, when LandAmerica went bankrupt, it sold Commonwealth to Fidelity National Financial.

    EXAMPLE: RELS’ dba ATI Title, nationwide escrow closing agents for Title Companies is how they do business to begin with.

    LAND AMERICA INCORPORATED 1991 as Lawyers Title Corporation. Renamed LandAmerica after Lawyers Title acquired Commonwealth Land Title Insurance Company and Transation Title Insurance Company in 1998 (Gllen Allen VA). Subsidiareis primarily title insurers offered other real estate transaction services VALUATION nationwide.

    ‘Note: Transnation merged into Lawyers Title in 2008.

    PRIMARY BUSINESS ‘TITLE INSURANCE’ NATIONWIDE:
    FACILIATED PURCHASE, SALE, TRANSFER AND FINANCING OF RESIDENTIAL AND COMMERCIAL REAL ESTATE.

    ‘Title Insurance, Lender Services and Financial Servies’

    The Title Insurance segment provided title insurance, escrow and closing services, commercial real estate services, property appraisal and valuation, building and site assessments, survey coordination, construction disbursement, coordination of national multistate transactions, tax-deferred real property exchanges, and real estate transaction management services.

    The Lender Services segment provided services to regional and national lending institutions, which complemented those offered in the company’s title insurance business. These services consisted primarily of real estate tax processing, flood certification services, mortgage credit reporting, default management services, and mortgage loan subservicing.

    The Financial Services segment engaged in originating and purchasing of commercial real estate loans in the southern California market, as well as soliciting deposits through certificates of deposit and passbook savings accounts.

    The company provided its services to lenders, developers, real estate agents, attorneys, and property buyers and sellers. It served residential and commercial customers with approximately 1,000 offices and a network of over 10,000 agents throughout the United States, Mexico, Canada, the Caribbean, Latin America, and Europe.

    On November 26, 2008, LandAmerica filed for bankruptcy protection.
    [1] LandAmerica’s largest competitor, Fidelity National Financial, previously proposed a merger on November 8, 2008, following LandAmerica’s posting multi-billion dollar losses in the third quarter.

    [2] That deal fell apart following due diligence. Instead, Fidelity has acquired several LandAmerica units: Lawyers Title Insurance Corp., Commonwealth Land Title Insurance Co., and United Capital Title Insurance Co.

    LandAmerica sold the subsidiary,
    LandAmerica Assessment Corporation (LAC), to
    Partner Engineering and Science, Inc. (Partner) in March of 2009.

    Partner is continuing to service the old LAC reports and is continuing to do business under the name “LandAmerica Assessment” until July of 2009.[3]

    2008 LandAmerica Agree to Merger”.

    Want to Know Which BPO and REO Companies Pay the Fastest?
    Then, you’ve come to right place! I have been asked by one of my BPO Training Students recently, “Which BPO and REO companies pay the fastest?”

    Here is the list I gave him specially for BPO companies that pay consistently within 7 days:

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    2. Rels Valuations (Valuation Support Services)

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    5. LAMCO (Lenders Asset Management Company)

    6. Ocwen

    7. RRR (Residential Real Estate Review)

    8. REO Brokerage Group

    This is just a sample of companies that I have found to consistently pay within 7 days of completing a BPO order. There are many more great companies to work for that pay within 14 days.

    If you want to learn more, I’ve got a detailed list of over 120 companies too, plus more detailed information about BPO training and lots more having to do with the broker price opinion business. Come check it out for yourself, click here to go to: my website.

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    Hi Nicole, I think you can add Finiti and Land America to your list. I just did my first on for Blackhawk and they paid within a week. I just started with Asset Value and am waiting to see how quickly theypay.

    Richard Atkinson (Reliant Realty)

    REAL ESTATE ORIGINATIONS
    FIRST STEP: TITLE COMMITMENT
    TITLE AGENCY & LENDERS POLICY ‘TITLE INSURANCE COMPANY’ C/O ASSIGNORS (OWNER OF SALE OF THE NOTE AND SERVICING RIGHTS) TRANSFER THE ASSIGNMENT OF MORTGAGE TO ‘ASSIGNEE’ TRUSTEE PENDING A COVETED DEFAULT.

    ALL TITLE COMMITMENTS ARE FOR ‘ASSUMPTION OF ‘SERVICING RIGHTS’
    UNITED STATES REAL ESTATE
    THE ‘ASSUMPTION OF CURRENT LIABILITY’ ON PROPERTY, HS NOTHING TO DO WITH ‘BORROWER’ AND EVERYTHING TO DO WITH THE PURCHASE AGREEMENT.

    THE INVESTORS REPORT (GRANTORS/GRANTEES) REVEALS THE HIGORY OF THE ‘INVESTORS’ CLOSING 2 DAYS PRIOR TO THE ‘BORROWER SIGNING THE SERVICERS’ PROMISSORY NOTE, SALE OF NOTE REMAINS CONCEALED DURING ORIGINATION, SERVICING AND FORECLOSURE

    PAPERLESS eMortgage, eCoz, MORNET, REAL ESTATE LAWYERS, etc. Service Mark.

    HARM TO ECOMONY NOT POSSIBLE WITHOUT
    WILLINING ‘ORIGINATION VALUATION SERVICES OF TITLE COMMITMENT FIRST’ ASSIGNMENT OF EXISTING LIAIBLITY ON PROPERTY.

  8. Recontrust was never registered in Arkansas–they stole our house and the federal judge will not allow us to go to court–he just denies every motion outright with not court hearing–anybody know a country to move to?–I’m pretty fed up–oh, I forgot they’ve stolen our equity, money, so no money to move–guess they want us to stay

  9. The ruling was an ok ruling, but if you read it the court made sure to tell JP Morgan how not to have this happen again. So in a nut shell the homeowner didn’t win anything because they were trying to make it void and the courts were not having it.

    As anything though if there is a flaw then there is a big hole to winning a case. Cutting out non judicial altogether would be the huge win here. Then they would have to prove the case and we all know the banks can not do this.

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