Banks are in a pickle at the moment over foreclosures. They were cheating the system, those banks were. They were not even taking the time to read the paperwork, just signing foreclose after foreclosure. One bloak is said to have paid for his house in cash, and never had a morgtage, yet the banks would not be stopped and foreclose on his home they did.
One of the problems is that when the mortgages went to wall street they were chopped up to distribute risk. So 1000 individuals owned part of the mortgage. An article came out some time ago argueing that the banks would have a hard time foreclosing, because by law banks need the deed on the house to foreclose. Because of the complexity of the securitization process of these mortgages they were lost in the wind. Good for the screwed masses, bad for the banks. Great news right?
But this puzzle can reverse the winners and losers, as i was just reminded by a commenter on a post i read. What happens when a homeowner doing the right thing, finally pays off his mortgage, does he get the dead of the house? How can he if it is lost in the wind?
Sometimes the comments from an article have more information than the original article.
No comments:
Post a Comment