FIRST STEP IN FORECLOSURE DEFENSE CASE:
(3rd party provided) A thorough title search of the property being subject to foreclosure is an absolute necessity. This includes researching back to the plat in the case of a home in a subdivision, and back 30 years in a case in which the property is not in a subdivision. We have won many cases based upon errors in the chain of title. It must be remembered that a large majority of the mortgages that we deal with today were closed between the years of 1992 – 2007. During these years, closing attorneys and lenders were overwhelmed with business, and as a result many errors in preparing documents that compromised the lenders lien rights. If in a non-judicial state foreclosure, you may need to order and do a quite title action to make these points and hold up the foreclosure (way better then using bankruptcy), add these points as additional causes of action.
In our title search, we are looking for:
- Plat was recorded prior to conveyance of lot
- Errors in the legal descriptions
- The legal description was attached at the time the deed of trust was signed
- Errors in the timing of the recordation of documents in the chain of title
- Errors in the spelling of the grantor or grantee names
- Both Grantors names in the body of the Deed of Trust and not just signed
- Failure to include all necessary signatures on deeds
- Recordings in the wrong county
- The grantor owned the property at the time of the conveyance
- The date on the note matches the date of the deed of trust
- The names on the note match the names on the deed of trust
- The grantors signed the Deed of Trust in the proper place (not under notary)
- Check the Secretary of State on all corporate grantors
- The date the substitute trustee was appointed relative to the Notice of Hearing
- The proper substitute trustee filed the Notice of Hearing
Many have won at least one case for each and every issue listed above. Some of the issues listed above have resulted in our winning several cases. Clerks and Judges are not reserved about recognizing errors in the chain of title, and will readily dismiss a case if the errors are properly presented to the Court. It is very important to thoroughly examine the chain of title before proceeding to identity errors with the lenders standing and endorsements to the promissory note. As many people are aware, the standing and endorsement issues often lead to fertile ground for many additional defenses to a foreclosure action.
Not legal advice
