Supporting, Informing & Connecting People in Foreclosure
Foreclosure Purgatory Part II, Clouded Titles
2011 Foreclosures is starting to show us what is coming on the horizon, “ Cloud on title”. (cloud) n. an actual or clear outstanding claim on the title to real property. “Clouds” can include an old mortgage or deed of trust with no recording showing the secured debt was paid off, a failure to properly transfer all interests in the real property to a former owner, a previous deed which was improperly written or signed, an unresolved legal debt or levy by a creditor or a taxing authority, or some other doubtful link in the chain of title. Often the “cloud” can be removed by a quiet title action, by finding a person to create or execute a document to prove a debt had been paid or corrected. Title companies will refuse to insure title to be transferred with a “cloud,” or they will insure ownership except for (“insure around”) the “cloud.”
Millions of questionable Real Estate transactions have taken place in the past few years and the ugly consequences of the ill business practices of the Banks are to be blamed. If we think that we are almost over the Foreclosure mess, well, we have something think about. Unless, like everything else in this Crisis, the problem is ignore and covered up, the nightmare will only grow bigger and bigger with time. Leaders and Prosecutors must make a commitment and deal with the problem now, unless they don’t have the spine and will to face what is developing in their watch. The cost for not dealing with this now, will cost us dearly. Justice is crying out. We must not put it away, the time for action is now!
“In the end, all of us are paying a price for this mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to continue to deepen….” President Obama explained. “But if we act boldly and swiftly to arrest this downward spiral, every American will benefit.” President Obama