Foreclosure not valid?
So I go get my mail this afternoon and there's a letter from a lawyer in there addressed to my fiance and me. We bought our house in January 2010 (it was a foreclosure). Well apparently that foreclosure was done by Mortgage Electronic Registration System (MERS) and the state of Michigan has just ruled that MERS foreclosures were illegal.
So the letter is from the previous owner's lawyer stating they may still have a vested interest in the property. I'm freaking out that we could lose our house over this. Yes it sucks that people were potentially foreclosed on unfairly, but we didn't know that and we did everything right on our end.
I immediately forwarded the letter to our title company and someone from their legal team is supposed to contact me, but in the mean time I'm so unsure of what the heck is going to happen and don't know what to do about it. Anyone know anything about this?
- Ed AtunLv 79 years agoFavorite Answer
You are ok. The bank that sold you the house will be paying some money to the previous owner. Probably $5,000. That will make the previous owner go away. If the previous owner insisted on taking ownership, he would have to make up 12 or more back payments immediately or he would lose the house again. He is not going to do that. It would also re-instate his loan so he would own a house with a big mortgage.
- BrendanLv 79 years ago
Regretfully for you, the vendor cannot pass on a better title than he possesses. If the vendor's title is proven to be faulty, then so is yours. I foresee a lot of litigation ahead regarding this, but in the first instance wait to see what the title company's legal team say.
Its a bit like purchasing a car in good faith only to find out later that is had been stolen. You lose the car.
- LadyCatherineLv 79 years ago
the only thing that might go on your side is if the people that owned the house before you don't want it.. your lawyer should be able to find them and find out..
this actually happens a lot more then people know..