Thursday, September 20, 2012

So What Exactly is All of this Talk About Quiet Title?

Hardly a day goes by that someone doesn't mention a “Quiet Title” action. From everything that is stated, it appears to be a dream come true for distressed home owners. First of all, the term “Quiet Title” is a bit misleading. The term "Quiet Title" refers to legal court matters in which the actual title to a property is disputed among several different claimants. This can happen in a variety of settings, but it is most common in inheritance battles or battles between business partners that each claim title to a property. This type of action does not apply to the vast majority of distressed home owners. HOWEVER,... What my colleagues in law and I have been successfully been doing is to argue in Court that the lender is not the real party in interest since they assigned their rights to the mortgage and/or note. This occurred because the lender (or servicing agent) does not properly “perfect” their interest in the property or they do not otherwise properly assign their interest. This creates a legal challenge to the foreclosure action. It also may be the basis for a separate cause of action to strip away the mortgage and thus make the remaining debt an unsecured obligation. This can be a very valuable asset to distressed home owners. Such actions can strip away th secured interests and render a property (as I like to say) "clear, but not totally free". I ahv e been successful in this type of action and it can be a huge benefit for home owners seeking a loan modification, short sale apporval, Deed in Lieu (DIL) or one seeking clear title to their property. Paddy Deighan J.D. Ph.D

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