TITLE COMPANIES REFUSE TO ISSUE POLICIES ON SECURITIZED MORTGAGES

REPUBLIC TITLE ANNOUNCEMENT: The Company will not insure title to any property which has been foreclosed by Ally Financial, Ally Bank or GMAC until further notice.

This follows a series of similar announcements over the past year from smaller title companies who, recognizing the enormous liability that the banks were attempting to shift to them, simply refused to issue the policies either issuing a “letter of declination” or issuing a policy that includes EXCEPTIONS for any claim arising out of the mortgage, the securitization of the mortgage, or the perfection of the lien.

We have reports now from people who have gone to the trouble of going to title companies and asking for a title commitment so that they would know whether they could sell or refinance their home. The title agents are flatly refusing (letter of declination) or issuing a commitment to get the fee from the homeowner WITH exceptions for the securitized mortgages. Of course what this means is what I have been saying for three years — title is either clouded or fatally defective.

And THAT means that there are facts supporting a claim to quiet title and remove the mortgage or deed of trust from the property, or even remove the trustee or clerk’s deed if the property was “sold” at auction. It also means that the claims for wrongful foreclosure, slander of title, predatory lending, violations of TILA, RESPA, HOEPA etc., are coming up to the front burner. If people make their claims and the lawyers do their job, the great theft of wealth from the middle class can be partially reversed, saving both the housing market and the economy.

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