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Poof - Just like that

By
Real Estate Agent CT#0791143

 

MONDAY, NOVEMBER 15, 2010

 

Without a mortgage document, holders of loans have no legal right to a mortgage. Up to 1/3 of all mortgage "notes" which equals $3.7 trillion in U.S. mortgages are supposedly missing according to the American Bankrupcy Institute. This was determined earlier this year in a little publicized study conducted by the institute. 

 

Investments that are bought for something that doesn't exist is commonplace, especially with commodities trading and often superficially drives prices by speculative investors. Many of the Wall Street trades were done with "Lost Note Affidavits" for mortgage securities, which were meant to be temporary fixes to transfer the securities - however THEY WERE NEVER REPLACED WITH THE ORIGINAL NOTE. Where have all the IOU's gone? This could create jobs for "note sleuths" - maybe a silver lining?

 

Proof of ownership is the responsibility of the plaintiff or the suing party - which, in the case of foreclosure is the lender. The foreclosure nightmare, with the number of lawsuits that will arise, is going to rear it's ugly head, creating another layer that we'll have to peel away, in order for the housing market to be healthy once again.

 

More than $535 billion in taxpayer money under TARP, which includes $148 billion for Fannie and Freddie has been doled out. $992 million has gone to help homeowners in distress.

 

Buckle your seatbelts...


 

Comments (7)

Nor Yeretsian
Envoy Capitol Realty Inc. - Toronto, ON
Envoy Capitol Realty Inc., Brokerage Toronto

WoW.

thank you, Deb.

Perfect Storm or what ?

Cheers

Nor Yeretsian

Nov 14, 2010 11:08 PM
Kathy Denworth
BHHS Keys Real Estate - Islamorada, FL
Realtor in the Florida Keys, Islamorada, Key Largo

I have a short sale seller in this circumstance. The bank went to court and could not provide the mortgage, so the Judge sent everyone home. I really don't understand. Aren't these documents recorded?

Nov 14, 2010 11:15 PM
K.C. McLaughlin
RE/MAX United - Cary, NC
Realtor, e-PRO, Homes for Sale - Cary, Raleigh NC

Deb  Thanks for the info and warning...

Nov 14, 2010 11:15 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Wish someone would Poof our mortgage....you sure would think that there are backup systems...and then again...government...common sense....lender...common sense..oh not.

Nov 14, 2010 11:22 PM
Paula Stills
Elite Realty - Rogers, AR
Full time Real Estate, Ready when you are!

Good morning Deb, the layers each have there own issue.  I'm like Nor WOW  what next.  ..... Make it a great day. 

Nov 14, 2010 11:22 PM
Deb Halsey
Greenwich, CT
Backcountry Specialist

..my guess is that the complications in finding the notes are often from secondary mortgages - 2nd, 3rd liens - more difficult paper trail- but all riding on the original. There may be subpoenas for the first mortgage holders to provide documentation in order to get to the bottom of this mess

Nov 14, 2010 11:40 PM
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Deb: You are so right and you can bet that tid-bit will never get to the front pages of the press/media either! It should be a crime to go after homes without showing the note to prove that they even own it!--and there are still people willing to point fingers at the homeowner even though, in many cases, the banks can't do their due diligence to legally take the home back! My understanding as to WHY the notes are missing is that when the banks were selling all those MBS, they pooled everything and, this is important: THEY THEN BUNDLED ALL OF THEM REGARDLESS OF THEIR QUALITY---THEN THEY CUT THEM OR SLICED THEM INTO LITTLE BITS THAT BECAME THE PRODUCT THAT THEY SOLD!!! Now, no sign of the pre-existing notes....and then (as you so succintly say) "Poof".....what a mess!

Nov 15, 2010 12:41 AM