LAKEPORT >> The Lake County Board of Supervisor’s discussion of a potential land records audit will continue Tuesday.
After multiple citizens voiced their concerns during numerous meetings, the topic was brought before the board during on May 19. Much of the public comment regarded alleged illegal foreclosures, which were not recorded by the county.
Several people who wanted to address the board eventually had to leave before the discussion began, as the meeting ran until 4 p.m. Furthermore, the board decided to bring forth a resolution stating their concerns, which led to the discussion being continued.
Redondo Beach-based Attorney Allen D. West, who has successful quiet title cases on his record, is also expected to address the board as to what can be done.
A quiet title case is a lawsuit that establishes ownership of property when it is in question, either because of liens or levies – which are known as clouds on the title and can result from mortgage loans being passed from one financial institute to another.
During the May 19 meeting, Lake County Assessor-Recorder Rich Ford cited a report from the California Department of Real Estate that he said clarified that the county recorder is not responsible for verifying the validity, authenticity or legitimacy of the document that is recorded.
“If the document meets the essential recording requirements and proper fees are submitted, the county recorder is obligated to and will record the document,” Ford continued.
Lake County District Attorney (DA) Don Anderson explained to what extent the DA’s office can pursue prosecution.
Most foreclosure cases that have been filed with the DA’s office regard Mortgage Electronic Registration Systems (MERS) and robo-filing, Anderson explained.
The system is a national database of home mortgages that allows lenders to bypass county recorders to easily transfer mortgage rights. The system is intended to improve efficiency. Before its implementation, lenders registered each mortgage sale with the local government, recorded in public records. MERS cut the recording system, saving time but blurring the trail of ownership each time a loan was sold from one party to another. “For a long time the appellate court cases have said, in essence, the homeowner has absolutely no standing to bring the civil suit,” Anderson said. “The plaintiff is going to be one bank over the other bank, not the homeowner.”
County Counsel Anita Grant said that the California Homeowners Bill of Rights, while giving “considerable protections to homeowners against predatory lending practices,” does not give any cause of action to local government to act on behalf of citizens civilly.
“Ultimately, a solution needs to lie in Sacramento … but it’s a question of who’s door are you knocking on,” Grant said. “If the state doesn’t give you the hammer, then you don’t have one to wield.”
Contact J. W. Burch, IV at 900-2022.
