Thursday, February 16, 2012

A Superb Report on Foreclosure Non-Compliance and Fraud, Well Worth Your Time

The City of San Francisco has released a wonderful, empirical study of foreclosure non-compliance and fraud, based on a forensic survey of 400 foreclosures in the recent past.  It is so well-written, and explains the foreclosure process and the mortgage-backed securities industry so succintly, that it would be a superb addition to a first year property law course.

The study finds that in 84% of the foreclosures in its sample, there was at least one clear violation of California law, and most often more than one.  Many (if not most) of these violations would render the foreclosures invalid.

The only questions now are (1) whether the wrongfully foreclosed upon can find some measure of justice through private claims; (2) whether we can put in place a system of law that prevents this from happening again and (3) how we can trust the validity of title going forward, since in many cases two centuries worth of record-keeping has been broken.

Mark A. Edwards

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It is probably fair to point out a critical view of the methodology used by the report. I am not an attorney so I have no way of knowing which perspective is correct. I am a housing/policy scholar and so I find this all fascinating, but the issue of assignments is way above my paygrade.

Posted by: Kurt Paulsen | Feb 17, 2012 2:15:44 PM

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