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Show Me The Mortgage!
I heard an interesting fact regarding foreclosures on the Randi Rhodes show a few months ago. That fact keeps showing up more and more. Evidently, as many as half of the mortgages out there don't have the original signed paperwork to back up the banks' legal right to foreclose. So if you are going into foreclosure, ask the bank to produce the paperwork. If they can't, don't leave your house because you are in a very strong position to re-negotiate your mortgage.
The courts are deciding that if a bank can't produce the physical paperwork, it cannot foreclose.
What will be the impact of the missing mortgage documents when added to the pile of "toxic" assets? Are they already considered toxic because they are going into foreclosure? Or will it take them out of the toxic category because the homeowner is in such a strong position to re-negotiate and get the mortgage back on the books as an asset that is generating income? If that's the case, the patriotic thing is to make the bank produce the paper and re-negotiate.
The courts are deciding that if a bank can't produce the physical paperwork, it cannot foreclose.
What will be the impact of the missing mortgage documents when added to the pile of "toxic" assets? Are they already considered toxic because they are going into foreclosure? Or will it take them out of the toxic category because the homeowner is in such a strong position to re-negotiate and get the mortgage back on the books as an asset that is generating income? If that's the case, the patriotic thing is to make the bank produce the paper and re-negotiate.
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In some cases it seems the entity wanting to foreclose is unable to prove ownership, because they've sliced and diced the mortgages to such an extent that they're "owned" within multiple acronyms, and the paper trails for that are missing too!
I guess it's a case of the cover-up leading to the downfall of the ones who did the dirty deeds.
February 6, 2009 10:30 AM | Reply | Permalink
I've heard that, too. But, wouldn't that also complicate homeowners that refinance or sell their homes and make a payoff on the mortgage? Have you heard of any homeowners running into problems then?
February 6, 2009 5:04 PM | Reply | Permalink
I think it is indeed complicating refinancing. And I'm honestly not sure how it might complicate something like a title search if you're trying to sell. Fascinating questions you're raising here.
February 6, 2009 5:19 PM | Reply | Permalink
Great questions. I wonder how much collateral is represented by the ±50% of unforeclosable mortgages. Is it trillions? I found this online but can't verify it "A US Census 2000 document has the total value [of mortgages in the US] is 6.5 Trillion." [This [other] source indicates that in 2007 the mortgage debt was $10.5 Trillion. http://mwhodges.home.att.net/nat-debt/debt-nat-a.htm]
What is the impact of another 3+ or [more] trillion dollars worth of paper that could be worthless?
February 6, 2009 7:19 PM | Reply | Permalink
What a delicious irony this news is eh?
For centuries greedy bankers have used signed original documents to crush the little people who they feed off of if those little people don't comply with every jot and tittle of the terms of their mortgages. This little revelation about their inability to produce the paperwork is just another indication of the outrageous irresponsibility found throughout the banking and mortgage lending industry.
I hope every citizen who finds themselves in the sad position of potentially losing their homes follows this strategy and that in every case where the paperwork isn't produced that they use that lack of documentation to stick it right to the rapacious bankers.
Thanks for this info!
February 6, 2009 10:30 AM | Reply | Permalink
That's what people are being urged to do. Insist on the paperwork. Some judges have prevented foreclosures for exactly such reasons!
Delicious irony indeed! Karma!
February 6, 2009 5:20 PM | Reply | Permalink
Yeah, the bureaucracy is just awful nowadays. Everywhere are just documents and documents... You have absolutely no chance to read all of them and see all essential points. that's why sometimes it is really easy to be the victim of some sort of the fraud. Mortgage frauds are really popular nowadays so people must be really careful. Thanks for such an interesting article one more time and keep publishing them in the nearest future too.
Regards, Samantha Garsson from getcashadvanceloans.com
June 30, 2010 4:59 PM | Reply | Permalink