There is a property going to sale friday in WA. This property has a substitution of trustee/deed of reconveyance that is signed by Bryan Bly, vice president of Nationwide title clearing. The problem is that Bryan Bly has testified to the Circuit Court of the Fourth Judicial District, Clay County, FL that he signed up to 5,000 mortgage assignments per day and said Nationwide multiplied his output by electronically stamping his signature on additional mortgage assignments that Bly said he never saw. He testified, too, that all the documents then were falsely notarized.
What does this mean going forward? I do not know how to interpret whether this is fraud or not. Sure seems like it. But several title officer which I spoke to acted as though “I am making a mountain out of a molehill.” Will title companies insure this property and issue clear title should I purchase it at auction? No one seems to want to address this issue.
What are your thoughts or take on this. Thanks
I agree w. the advice you have recvd. Who is conducting the sale? (Who is the Trustee?)
Northwest Trustee services is conducting the sale. Would you please elaborate on how this is not fraud if we assume this document has been prepared and signed in the ways I have stated.
Thanks for your quick response. I am not sure yet how to interpret the robo-signing scandal and its potential effects on property title.
The so-called “robo-signing” scandal did not really affect the non-judicial foreclosure states like Wa. There was no question that 99% of the people in the Judicial fcl. states who were involved were months or years delinquent. Lawyers were technically correct in trying to give these people extended free rides by picking on the fact that the multitude of papers involved in any Court proceeding could not be mechanically signed. It is true that as much as 2% of the mechanically signed papers were erroneous and those 2% were harmed.
Again, this did not involve the foreclosures in the non-judicial states. NW Trustee Services is a reputable company. You would not have trouble getting title insurance. HOWEVER - in light of your false fears, I would suggest you stay away from buying at any foreclosure sale. You won’t be able to sleep at nights because there are all kinds of real fears to worry about. (Getting possession, occupants trashing property on the way out, finding out afterwards it was a Crack House, error by the title company that originally insured the loan and overlooked a title defect etc.
Dear Fearless Mike,
I really appreciate your invaluable feedback. It really has put my false fears to rest. HOWEVER - What if you must evict past homeowners in the COURT OF LAW, with a home that invololves so-called Robo-cop-signing documents? Are you now not in a judicial setting?
In all seriousness, I do appreciate your response.
Sincerely,
Falsely Fearful Alex
One way you would be absolutely covered is if the “professional” debtor filed one or more bankruptcies. When a lender gets Relief from the Automatic Stay from the Court and goes to Sale - in the order prepared by the lenders atty. for the Judge to sign is a statement that the lender can proceed to evict. It is worded so that it covers a potential bidder (assuming the lawyer was/is a regular creditor’s atty.) Even before these recent cases you are talking about - there were always a few professional debtors who knew how to play the system and challenge the validity of the foreclosure after the fact. I haven’t run across any buyer getting tied up for a while (here in Ca.) based on the arguments raised in the cases you cited. They do raise other, similiar, issues - mainly related to the claim they were in the midst of a workout agreement. Often that is true, and as soon as they realize the lender foreclosed they raise hell and stop the deed from even being issued.