Bad Mortgages

Mortgages are a huge part of the everyday lives of a lot of West Michigan citizens. In most of our lives that mortgage payment takes up a large portion of our budget. But are we actually giving money away to our mortgage holders?

There seems to be a new trend developing in the current legal system. Courts are standing up for the little guy when it comes to mortgage disputes. It might be in response to the public outcry against the large mortgage holders that are being bailed out by the federal government while individuals continue to lose their homes to foreclosure. Or it could be simply the continuing evolution of Michigan Courts. Either way, it should have everyone looking a little closer at their mortgages.

Large mortgage companies put out thousands of mortgages a year. This is a highly technical process that if not followed closely can result in a mistake that may not give the mortgage holder a lawful right to the property. With so many mortgages being created and also with so many changing hands, mistakes are bound to happen. These mistakes were often dismissed as not being equitable before if the court was to invalidate the mortgage.

Recently though this has changed. More courts are beginning to recognize these mistakes as reasons for the mortgage holders to lose their interest in the property. The Bankruptcy Court has not only voided liens on the property but held that those mortgage holders that have had liens voided are not permitted to file a proof of claim because they have failed to do so in a timely fashion.

One Judge in New York actually took this new wave of thought to the next level when ruling on a foreclosure dispute case. He ruled that not only was the foreclosure invalid and the mortgage was invalid, but also ruled that the bank had no claim to the house at all. This gave title to the home to the owners free and clear of any claims.

The mortgages that you have signed are legal contracts and they must be followed and there are specific laws that must be followed in order for them to remain valid. It is important that you hold the financial institutions that you enter into these agreements with to the same strict letter of the law that they do you. If trouble arises or you feel that you are being treated unfairly, it is important to consult an attorney about these things.