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View Diary: The Commercial Real Estate Bust Spells Problems for Foreclosure Fraud Settlement Cheerleaders (50 comments)

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  •  I'd like to know (8+ / 0-)

    more about that too, WheninRome.  If you do dig something up and write about it, please let me know via kosmail if you think of it.


    "Justice is a commodity"

    by joanneleon on Thu Feb 23, 2012 at 09:06:25 AM PST

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    •  The thing is it should have been (3+ / 0-)
      Recommended by:
      priceman, jimreyn, KenBee

      one of the major items to look at before we even get to write-downs. One would have to assess what was owed, what the property is worth and how much it would cost to foreclose. It does cost money to foreclose with taxes, homeowners insurance, legal process etc..

      So the insurance companies know exactly what these figures are. I am unclear whether insurance is tied to the price and LTV ratios at the time of the sales contract or whether they float and this probably varies. Since the contract is between the mortgagee and the insurance company purchasers aren't privy to the language, they just have to pay it with their monthly payments. I'm not even sure the purchaser has the right to know what the language is or even who the insurer is; honestly before this mess it never occurred to me to delve into it, one just assumed the mortgage holder had that handled.

      Then there is another layer to all of this which is not discussed and that is the issue of homeowners associations, condo associations etc.. For these there is a blanket insurance policy which covers these things. I have had access to these in the past but haven't scrutinized the sections that deal with foreclosures and insurance. This of course has to do with fees assessed with individual properties and what happens when a property is foreclosed.

      I think if we got a look at the insurance side of this mess,  it would unlock the whole enchilada.

      •   mortgage and title insurances (1+ / 0-)
        Recommended by:
        WheninRome

        on wiki is interesting in that there are phrases about mortgage insurance not being valid/payable when there is fraud.

        It doesn't say fraud by which party.....so maybe I have missed or temporarily forgot where there are giant money suits between mortgage insurers and Mers and servicers/originators.

        From those who live like leeches on the people's lives, We must take back our land again, America!...Langston Hughes

        by KenBee on Thu Feb 23, 2012 at 01:35:44 PM PST

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