Proposed legislation in Arizona [SB 1259] would require lenders to prove that they actually hold the note for homes they foreclose on– and the proof better be in order. [Thanks M!]
Here’s the key point:
C. FAILURE TO PROPERLY RECORD THE SUMMARY DOCUMENT THAT DEMONSTRATES EVIDENCE OF TITLE FOR THE FORECLOSING BENEFICIARY AS OF THE DATE OF THE TRUSTEE’S SALE AS PRESCRIBED BY THIS SECTION RESULTS IN A VOIDABLE SALE.
Follow the link below to read the legislation:
That ought to put an immediate and complete stop to the crap that banks continually run about having “substitute” documents or having an assignment when they really don’t. Note that this bill (which apparently was just voted out of committee 4-0 in the Senate, and which has a companion in The House) will put an absolute stop to any foreclosure where the originator of the note did not transfer it properly (that would be, I’d argue, most of them) and it will render void upon suit by any person who is foreclosed upon and discovers that the note was never properly conveyed.
Ex-post-facto “cleanup” BS games will be rendered impossible by this bill.
The bottom line is this: Either the original issue of that mortgage and its subsequent securitization went through all previously-required assignments and you can prove it or your ability to convey a title via Trustee Sale is gone.