Mass: Foreclosure Redos Ordered; Former Owners Get Second ChanceSubmitted by bobbyw24 on Mon, 11/15/2010 - 10:33
Hundreds and maybe thousands of Massachusetts residents who thought they had lost their homes in foreclosure are now finding out otherwise.
When title companies refuse to insure the property, because defective paperwork in the foreclosure case doesn't make clear who owns the home, a number of lenders are opting to start over again from scratch, reports the Boston Globe.
Puzzled residents then receive letters notifying them of new foreclosure proceedings and informing them that they are, in fact, considered homeowners once again, the article recounts. The situation is becoming increasingly common in Massachusetts because of a 2009 Land Court decision that made clear--unless and until an appeal to the state's top court results in a reversal--that such paperwork defects, when the case is filed, can't be cured after the fact.