In Massachusetts, the Secretary of State seems to realize that the Supreme Court’s foreclosure ruling against Wells Fargo and U.S. Bancorp has opened up a sizable can of worms:
Massachusetts Secretary of State William F. Galvin is calling for the Legislature to create a special tribunal to deal with homeowners’ concerns about foreclosures, following Friday’s ruling by the state’s highest court that puts into question the ownership of thousands of properties repossessed by lenders.
“Homeowners’ concerns about foreclosures” is putting it rather gently, don’t you think? In fact, any homeowner in Massachusetts who purchased a foreclosed property from a bank over the past several years is likely in the middle of a conniption. These borrowers bought their properties in entirely good faith, and the vast majority have stayed current on their mortgages. Yet because the Massachusetts Supreme Court last week invalidated two foreclosures over basically paperwork issues, these post-foreclosure buyers no longer have clear title. At a minimum, they won’t be able to sell their properties any time soon. And conceivably-who knows how things work in Massachusetts these days?-they could lose them outright to the original, pre-foreclosure, delinquent borrowers. If this is what is supposed to pass as fair, I’m at a loss. . . .