HELP-Challenging Foreclosure Validity Court Process Best Strategy

[Kevin Garabedian]

Hello all, I have recently lost my mind discovering how difficult and from my point of view unreasonable the Massachusetts court process is for foreclosures and challenging their validity. I have recently purchased an REO property via xome.com with the previous owners in place. I got a good enough deal on it that even with a normal eviction factored in I thought it was still worth it.

I purchased the REO property through xome.com back in June 2021. The original owner was foreclosed on by the bank in February of 2020. We received from the bank a 90 day right to cure that they sent out November of 2018. A foreclosure notice that was mailed first class to the previous owner in November 2019. Several other documents on the registry of deeds as well. Their was enough here for the closing attorney and I to feel like we did enough due diligence to move forward with the purchase without expecting the foreclosure's validity to be questioned. I would also like to mention that I offered the previous owners a more than appropriate cash for keys offer.

The previous owner who was foreclosed on just so happened to work for a company in Massachusetts called Wayfinder who assists people with foreclosure preventions. Not that it matters but, it leads me to believe that they were privy to this, for lack of better words, loop hole the whole time. Anyways, that loop hole is the previous owner challenged the foreclosure based on the grounds that the bank did not have a face-to-face meeting with them or better known as 24 CFR § 203.604 - Contact with the mortgagor. 

The thought alone that the court system of Massachusetts did not check this before the initial foreclosure is irresponsible and only slowing the court system down by causing more work. Then, the fact that this measly Face-to-Face matter can put the original eviction on hold for what looks like will be at least 2 full years before the courts hear from the bank and the foreclosed on mortgagors attorney about a face to face meeting. However, with that being said in 24 CFR § 203.604 - Contact with the mortgagor, there is a stipulation that says a face-to-face meeting is not required if a reasonable effort to arrange the face to face meeting is unsuccessful and that is detailed below.

"A reasonable effort to arrange a face-to-face meeting with the mortgagor shall consist at a minimum of one letter sent to the mortgagor certified by the Postal Service as having been dispatched. Such a reasonable effort to arrange a face-to-face meeting shall also include at least one trip to see the mortgagor at the mortgaged property, unless the mortgaged property is more than 200 miles from the mortgagee, its servicer, or a branch office of either, or it is known that the mortgagor is not residing in the mortgaged property."

So, now we have the "letter sent to the mortgagor certified by the Postal Service". In addition, the mortgaged property is more than 200 miles from the mortgagee, its servicer, or a branch office. 

This tells me that it was done correctly. With that being said, I am not an attorney nor a judge and I understand my determination holds no weight however, how can the attorneys/court system comfortably take this long to check what seems to be such an simple matter. The case was originally brought up in district/housing court then it was suggested that it be tried in federal a month later where it was determined that no in fact it should be heard in district. Two months later at our next court hearing in district court they determined they made a mistake and it should actually be heard in federal court and the next hearing will be 120 days out. 

I am losing my mind trying to make sense out of how the bank can take our money for the house which relieve's them from the burden of holding it. My attorney is getting paid and it seems like they are not doing anything to help me at this point as the eviction is on hold and the current court case is between the bank and previous owner. The previous owner is living for free in a house that I own, pay the water bill, insurance and property tax on but, at the same time the court has not confirmed that I actually own the property??? Also, the previous owners have not made a mortgage payment since late 2018. 

It seems like the previous owner knows that they will not win but, has found a way to prolong their eviction through this foreclosure challenge. 

I feel like there has to be a better way to handle this matter in regards to the court system. 

Furthermore, if anyone has any suggestions on how I can best move forward from here please share them with me. I feel like I am stuck with no options but, with my lack of knowledge in the legal world mixed with a willingness to find a solution I would love to think there is something I can do that I have not done yet. Please share some ideas with me.

It seems like everyone is content with how terrible this matter is being handled besides me.