Saturday, December 10, 2011

Mortgage Foreclosure project: National Law Commissioners

Mortgage Foreclosure
Take a look at this--if you follow the link to the first document they have listed you see some of the things they will be doing. The entire question of judicial vs nonjudicial is central. That's why even though this is about mortgage foreclosure it could have spillover effects for condo/hoa foreclosure.

• Who can commence foreclosure?
• What evidentiary proof is required to commence a foreclosure?
• What pre-foreclosure notices must the mortgagee provide?
• What is the appropriate time and place in the foreclosure process for alternative
dispute resolution?
• To what extent are statutory redemption periods warranted?
• To what extent do current foreclosure processes impose unwarranted costs that
inhibit a borrower’s potential ability to redeem?
• To what extent may private actors fulfill the role of government officials in the
foreclosure process?
• What post-sale court process, if any, is required to confirm the sale, and for what
• To what extent is the purchaser at a nonjudicial sale entitled to a presumption of the sale’s validity
based on the trustee’s representations of compliance with the state’s nonjudicial foreclosure


Anonymous said...

The "National Law Commissioners" are not an unbiased group when it comes to this topic. Look at the makeup of the group that has developed the "Planned Community Acts". Not surprisingly, it was overwhelmingly representatives from the HOA industry who are seeking to impose these things everywhere and to convert your home into a conduit pumping the contents of your bank account into the pockets of the members of the trade group.

Industry groups have likewise infiltrated the Permanent Editorial Board for the UCC in an effort to create a "banks win" scenario for every foreclosure case. This despite the fact that the UCC expressly excluded real estate from its statutory domain.

Similarly, you will have lop-sided representation with this group. Attorneys representing non-judicial and judicial foreclosure mills will be the prime participants. I see you noticed the lack of representation of property owners from the previous reference to the Credit Slips article. Indeed much like lobbyists for legislation dealing with HOA laws, you are going to see primarily the VENDORS that make a buck either threatening to deprive or who actually deprive the owners of title and possession to their property that are promoting these "model" laws.

The influence of the industry is very apparent in Texas. Consider for example that the "lost notes" provision of the Texas UCC was changed to permit entities to knowingly trade in lost notes. Go figure ("Hey, I'd like to sell you $1 billion in negotiable instruments. By the way, we can't actually deliver them because we lost all of them...") Likewise consider the foreclosure provisions of Texas Property Code §51. Noticeably missing is any reference to who holds the debt. The focus is entirely upon the deed of trust, eliminating any liability for mill attorneys, eliminating liability for "trustees" that are invariably hired by the mill attorneys, eliminating any proof requirements or sworn statements - even in a nonjudicial environment, and pushing all authority to the "servicer" rather than the real party in interest.

Evan McKenzie said...

And there are no consumer advocates involved in the process--all the more reason for some of you folks to get on the mailing list. I did.

Cynthia said...

I searched the site (Mortgage Foreclosure project: National Law Commissioners)for homeowner association foreclosures and her are the results:

ULC Search Engine
About 2 results (0.20 seconds)

Restatement (Third) of Property (Servitudes) § 4.8 (2000 ...
File Format: PDF/Adobe Acrobat
The Green Acres homeowners association, which is expressly empowered to enforce ..... taxes and expenses of sale out of proceeds of foreclosure sale before ... Restatement%20Provisions.pdf
clipped from Google - 12/2011

File Format: PDF/Adobe Acrobat
purchase attempts include the protecting of property owners from arbitrary and unexpected ...... including levy of execution, foreclosure of a vendor's ..... contract with any public entity, individual, firm, association or corporation ...
clipped from Google - 12/2011