Foreclosures Duping The Law
The case of Kwaku Atta Poku has stirred up a hornet’s nest. Maryland Court of Appeals has heard the case of Poku. The process of foreclosure took his house away because he trusted his licensed agent, paid his refinancing dues but the agent never paid it. Maryland is famous for fast track courts – but here it worked fast for the plaintiff without giving the defendant time to prove his point.
Many judges connected with Poku’s appeal are worried that negation of the foreclosure sale of his house would have a negative impact on future buyers of foreclosed houses at auctions. Buyers need to be assured that after purchasing in a court sale, their title to the deed will be clear and not involve any lengthy legal combat with the previous owner.
At the root of the trouble is Maryland’s foreclosure rules that does not allow any time to the defendant and hurries on to a foreclosure sale.. Poku’s case was quickly disposed off within a month of filing. It can happen within 15 days also. Governor Marin has suggested that the time should be extended from 15 days to 45 days. The laws of Maryland do not even require the owner receives the notice. This is despite the fact that the US Supreme Court had ruled that such a notification is a must.
Against this background how will Poku and others like him get the time to prove that the lender is in the wrong? The next big question is – having proved his point what redress can he expect
By reversing and clarifying the previous rulings the Court of Appeals can now admit certain rights of Poku and other house owners like him. The court can make it clear that if the lender is in the wrong by foreclosing the subsequent sale of the unit shall not stop the borrowers from suing the lender or its representatives for damages. Such a ruling would not go against the banking system as a whole. It would ensure that such fraud does not recur. Lenders and their agents will now think twice before rushing on with the foreclosure process.
Such a balanced judgment would do justice both to Poku and the foreclosure system. Poku may not be able to get back his house but he can now fight for damages to compensate for his losses. This compromise will see to the interest of both sides.
