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Massachusetts' Governor Signs Foreclosure Title Clearing Bill

Governor Baker of Massachusetts recently signed into law an Act Clearing Title To Foreclosed Properties (Senate Bill S2015), which potentially will clarify the land title of thousands of foreclosed properties that were rendered defective following the Massachusetts Supreme Court ruling in the case of U.S. Bank v. Ibanez.  In that case, the SJC held that foreclosures of sub-prime mortgages were null and void where the lenders could not establish the chain of ownership within the securitized mortgage back securitized pools.  The Ibanez decision created a significant defect in the title of purchasers who at bought at foreclosure, as the previous owner now had a right to reclaim title to the property.
The new law becomes effective on December 31, 2015, and it protects bona fide purchasers from title challenges after three years.  The law's three year statute of limitations is aimed at protecting these purchasers from subsequent title challenges, while also giving individuals whose homes were wrongfully foreclosed a sufficient time period to pursue their claims.  
The full text of the law can be viewed here:  
http://www.reba.net/images/UserFiles/File/legislation/2015/Ch141_ActsOf2015.pdf
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