Sam Gendusa May 5, 2015

Newsletter - May 2015

As the housing market begins to turn a corner for homebuyers, banks and mortgage servicers are still smack in the middle of dealing with the rash of foreclosures and delinquencies created by the market crash. So while others may be moving on, there remain a number of crucial legal situations mortgage and banking professionals need to be aware of – because they can put your portfolio at risk.

I want to take this newsletter to brief you on two important industry issues that should be on your radar, because they really go hand in hand: statute of limitations litigation and proof of servicing rights/ownership of mortgage notes.

1. Will judges allow you to enforce the terms of the mortgage contract?

A fascinating article from Roy Diaz in DSNews reveals that there are legal cases working their way to the Supreme Court level (in Florida, but it never stops there, does it?) that could hamstring a servicer's ability to foreclose on a property. It all revolves around the issue of the mortgage's statute of limitations. Some defense attorneys are arguing that mortgages are not recurring debts and that banks cannot foreclose after the loans original statute of limitations has expired. It’s not hard to see the disastrous impact a ruling in the borrower’s favor would wreak for banks and servicers. So this is an issue to keep your eyes on. Don't assume the law is on your side when it comes to contract enforcement. Take steps to make sure your paperwork is in impeccable order to put your best foot forward without delay.

2. Can you prove you own the note?

Probably the most popular request we've gotten in 2015 is for Assignment Verification Reports for a clients' mortgages/deeds of trusts. Because of the hostile legal environment for banks and servicers, they want to be sure they can prove beyond a shadow of a doubt that they own the loans in their portfolios. And this is a step I recommend for everyone reading this. Far too many companies get sloppy with the documentation when they sell or purchase loans and it spells disaster for them later when they need to prove they own the note in court. Don't bet on your portfolio with that. Ensure you have the proof you need to defend yourself and your financial future.

Blue Streak Docs can provide document retrieval services and Assignment Verification Reports to ensure you have all the evidence you need for compliance and safety of your portfolio. Plus, if you haven't worked with us yet, you can try us out and get your 5th order FREE!

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Merry is an all-star employee! She sets a great example in her team lead role with her excellent work ethic, and is always willing to help anyone and any department in need. Merry constantly provides excellent customer service to both our clients and abstractors and always makes it her goal to produce a flawless product.


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