Fraudclosure Fail | D.C. Council Alters Foreclosure Law, Removes Clause Which Said That Any Violation of the Law Would Void a Foreclosure

Money talks and deadbeats walk...

Guess it is okay again to steal homes in D.C.

Gotta love how they spin the title to the article...

D.C. Council alters foreclosure law, adds new consumer rights

The D.C. Council enacted emergency legislation Tuesday to amend a controversial clause in its foreclosure mediation law that threatened to stall the sale of foreclosed affected homes across the city.

The move came just days after The Washington Post reported that two large title insurers, which account for nearly 80 percent of the D.C. market share, stopped insuring sales of foreclosed homes because of concerns over the law.

The District implemented regulations in May requiring lenders to enter into mediation with a homeowner before foreclosing on a home. But now, two large title insurers, which have about 80 percent of the D.C. market share, have stopped insuring the sale of foreclosed properties, saying the law makes it too risky.

 

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During the rule-making process, members of the title industry asked for a certification asserting that a foreclosure had complied with the legislation, said Christopher Weaver, the D.C. associate commissioner for banking. But that would have shifted the liability for any mistakes to the city, he said.

 

“I personally think that’s just too much risk for the District of Columbia,” Weaver said.

 

At issue is one sentence in the council’s legislation: “Each foreclosure sale in violation of this act shall be void.

The change will make it easier for buyers of foreclosed homes to obtain loans, because title insurance, which protects mortgage lenders from challenges to their rights to a property, is an essential ingredient in the home-buying process. That, in turn, could help stabilize District prices by speeding the sales of homes in the foreclosure pipeline.

“The issue is resolved,” said Roy Kaufmann, a lobbyist for the D.C. Land Title Association, which includes the two insurers, Fidelity National Title Group and First American Title Insurance, which withdrew from the foreclosure market.

Fidelity and First American had argued that the council’s law, which requires lenders to begin mediation with a homeowner before foreclosing on a home, was too broad and posed too much risk for them in insuring foreclosed properties.

To allay their concerns, the council took out a controversial clause, which said that any violation of the law would void a foreclosure sale, and replaced it with specific language endorsed by the D.C. Land Title Association about what constitutes a violation.

Check out the rest here...

Guess it was to much to ask to the fraudsters to follow the law...

Nice name for the new ammendment...

"Saving D.C. Homes from Foreclosure Amendment Act of 2011"

It almost sounds like they are saving homes...

 

www.4closureFraud.org

 

Saving D.C. Homes From Foreclosure Amendment Act of 2011