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WilCo Homeowners At Risk For Unexpected Foreclosure
Tens of thousands of homeowners in Williamson County could face an unexpected foreclosure at no fault of their own.
County Clerk Nancy Rister paid $12,500 for an audit. It uncovered missing loan documents and fraudulent paperwork putting the ownership of homes at risk.
As of January, there are more than 300 foreclosed homes in WilCo.
Rock Properties realtor Walter Rock has seen a large number in the Teravista neighborhood in Round Rock.
In a mortgage the bank says if you don't pay you don't stay, Rock said.
However if you do pay, you could still be packing.
Rister blames a Texas Law that changed in 2003. It allowed certain loans to be filed in a national database called Mortgage Registration System or MERS. However, that did not exempt companies from filing in the county.
Every time that note is sold, per state law, it's supposed to be recorded in the local county, confirms Rister.
She is now finding out that didnt happen and the county has lost $957,000 in revenue.
Between 2004 and 2012 I've estimated around 60,000 documents plus have not been recorded that should have been, said Rister.
KEYE TV found out this is more widespread. We uncovered Travis and Hays County are also looking into the issue.
All that can be done is the counties to seek legal action.
For now homeowners need to check if all their documents are up to date. To find that information in Williamson County, Click here