Paddy Deighan is a real estate investor, attorney and advocate. This blog is dedicated to providing useful information, tips and guidelines for all of your real estate needs.
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