Chain of title flawed in “nine out of ten” cases
Nevada is ground zero for foreclosures in the wake of the housing crisis and foreclosure fraud is unquestionably rampant given the robo-signing debacle wherein thousands of homes were foreclosed upon by foreclosure mills without any human overview, rather processed electronically. A recent study found that MERS had destroyed the chain of title in all of housing, not just Nevada.
Reporter George Knapp discussed foreclosure fraud with various lawyers in Las Vegas with one saying that the chain of title is flawed in an unbelievable nine out of ten cases that cross her desk.
Knapp bought a foreclosed upon home three years ago and as a test to see if there were any errors in the chain of title, he gave his home address to the lawyer who immediately discovered that fake signatures and improper filings meant he didn’t own his house, putting him in the “nine out of ten” category as he had fallen victim to the very fraudulent behavior he was reporting on.
Knapp confirmed with the Nevada Attorney General’s office that he did not actually own the home but no one, including the AG and lawyers can tell him how to reverse this issue with his home much less the rest of the state or nation filled with homeowners who may not even own the house they pay monthly for, putting so many Americans in a vulnerable position.
Incredible.
Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.
utahhomes
December 1, 2011 at 10:50 am
Wow… this is unfortunate. Something needs to be done about this. Are these foreclosure mills still operating?
Lani Rosales
December 1, 2011 at 12:04 pm
Although almost all of the foreclosure mills are under investigation as are the banks that hired them to process their foreclosures, they are still mostly in operation.