Foreclosure Rates Rise, Not All Will Stick
Posted: 12:45 am PDT May 14, 2011Updated: 12:49 am PDT May 14, 2011
Kootenai County, Idaho -- Despite the economic recovery, foreclosure rates are on the rise nationwide.RealityTrac said one in every 793 Houses in Spokane County received a foreclosure notice in April. That's more that 160 homes foreclosed in just one month.In Kootenai County, the rate is more than twice as high, with one home in every 320 foreclosed in April.However, not all of those foreclosures will stick."Cases are popping up all over the country that are questioning the validity of foreclosures being conducted under the MERS system," said Attorney Jeff Crandall.MERS stands for Mortgage electronic registration systems. It's supposed to help streamline the purchase and sale of mortgages.The system also eliminates having to document when a loan changes hands in the county.Crandall said the problem happens when the transfer is not recorded with the county recorder. In that case, he said the new loan holder may not have the right to go after foreclosure.
A MERS representative said changes in assignment is updated in their system. They have won several hundred cases in their favor that includes a MERS related foreclosure sale in Idaho.That's not enough for Crandall who questions any MERS related foreclosure, and wants to make current lenders prove that they have the authority to foreclose.He is now working with a couple that lost their home on Hauser Lake.53 year old Ed Brock said they were 2 1/2 years into their loan when they wanted to refinance. Their loan was sold several times, and in the process of trying to track down who owned it, they fell behind on payments."We ended up losing our retirement house. It was the first and only house we ever bought," said Brock.
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