Senate passes bill to clear titles in foreclosure sales
The state Senate on Thursday passed legislation aimed at ensuring clear titles in real estate transactions involving previously foreclosed properties.
Supporters of the bill said it would address a Supreme Judicial Court decision that voided thousands of sales involving lenders that could not produce a written assignment of a mortgage prior to the first publication of notice.
On the Senate floor, Sen. Michael Moore addressed details of the bill, which drew no opposition.
Moore said the legislation, if approved, lays out a process under which titles to foreclosed properties purchased in good faith will be cleared by designating affidavits as conclusive evidence in favor of subsequent owners unless there has been a challenge within three years of the date of its recording.
“Thousands of people have purchased foreclosed properties, fulfilling their dream of becoming a homeowner. When these owners go to sell or refinance, they are shocked to learn their titles are void. This bill protects homeowners of foreclosed properties from being unable to sell or refinance their homes due to issues with the title,” Moore said.
The bill gives borrowers whose interests have been foreclosed upon one year to file actions challenging the validity of prior foreclosures before the affidavit becomes conclusive evidence.
“This issue affects the real buyer of a property and negatively impacts the real estate market as a whole,” Senate President Therese Murray said in a statement after the bill’s passage. “Some residents are without a clear title to their home because of potential procedural errors that took place many years ago.”
The bill now moves to the House.
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