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View Diary: Citibank fails to prove Mortgage Ownership, in Foreclosure Suit (48 comments)

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  •  It can only be a holding action... (12+ / 0-)

    These people DID borrow the money, and they ownership will either be unwound, or at some point there will be legislative action that allows these houses to be foreclosed on.

    But it DOES put more pressure on the lenders, in the mean time, to either allow short sales, or to restructure these debts which would create a fresh note.

    "My name is Inigo Montoya. You killed my father. Prepare to die."

    by davewill on Fri Oct 01, 2010 at 03:57:45 PM PDT

    •  that would be (7+ / 0-)

      a positive develop --

      if they actually had an incentive

      to actuall help the people, they conned.

      The press is impotent when it abandons itself to falsehood. --Thomas Jefferson to Thomas Seymour, 1807

      by jamess on Fri Oct 01, 2010 at 04:04:35 PM PDT

      [ Parent ]

      •  Most mortages are delinquent because (6+ / 0-)

        people have lost their jobs, income has fallen, and real estate values have halved. Neither the borrowers nor the lenders were expecting this all to happen. There are many borrowers out there who were indeed victims of a bad broker or mortgage company. But the vast majority of people are just good people who borrowed too much.

        I'm in the I-fucking-love-this-guy wing of the Democratic Party!

        by doc2 on Fri Oct 01, 2010 at 04:06:54 PM PDT

        [ Parent ]

        •  the Tent City interviews (6+ / 0-)

          might argue with that.

          The press is impotent when it abandons itself to falsehood. --Thomas Jefferson to Thomas Seymour, 1807

          by jamess on Fri Oct 01, 2010 at 04:10:36 PM PDT

          [ Parent ]

        •  Lots of people agreed to loans (3+ / 0-)
          Recommended by:
          ExStr8, dharmafarmer, jamess

          they shouldn't have but were told when they signed on the bottom line that they could just refinance before the rate got hiked, etc.  Now...that doesn't make them blameless, but I do believe they weren't treated honestly and shouldn't bear the entire brunt of the state of real estate mess today.  I would love it if rulings like this evened the playing field a bit.  I bet most people would just like a fair shake and an opportunity to stay in their house and make payments they can afford in a timely manner.

          •  they should be civil cases, perhaps (7+ / 0-)

            where both parties "split the difference"

            of the Mortgage collapse.

            The Senate has found that a large percentage of issued Loans, were fraudulently made:

            Was Bernie Madoff the Exception or the Rule?
            Robert L. Bororsage -- Apr 14, 2010

            The Levin hearings show that WaMu systematically peddled loans to people it knew could not pay them back. This wasn't an accident.
            According to the FBI, 80% of mortgage fraud is committed by the lender. We're not talking about stupid loan officers allowing borrowers to get away with something crazy that is bad for the bank. We're talking about clever loan officers pushing fraudulent documents in order to score bigger paychecks, and bank executives looking the other way so that they can keep getting big paychecks from the securitization machine.

            This isn't a problem unique to WaMu. This is how the U.S. mortgage system operated for half a decade. WaMu particularly pushed predatory option-ARM loans, loans with an initial monthly payment so low that it often didn't even pay off the interest on the loan. Then after a couple of years, the monthly payment explodes -- and the loan becomes unaffordable.

            The press is impotent when it abandons itself to falsehood. --Thomas Jefferson to Thomas Seymour, 1807

            by jamess on Fri Oct 01, 2010 at 05:29:20 PM PDT

            [ Parent ]

    •  Legislative action? In California our state (2+ / 0-)
      Recommended by:
      ExStr8, shaharazade

      legislature is just as pathetic as the Federal government. Maybe more so. We still do not have a budget passed. If they manage to pass this legislation without moving other things forward it will be one more outrage.

      "Don't knock's just like chess but without the dice" - john07801

      by voracious on Fri Oct 01, 2010 at 04:33:43 PM PDT

      [ Parent ]

    •  That's what I'm hoping happens (2+ / 0-)
      Recommended by:
      ExStr8, dharmafarmer

      that the mortgage holders will not only become more honest and forthcoming in their dealings, but also have added incentive to work things out the the homeowner in trouble.  Right now it seems to be a good write off for some...because I can't get why they'd want all this empty inventory and defaulted loans otherwise.

    •  Right (1+ / 0-)
      Recommended by:
      Remembering Jello

      There's a proper plaintiff out there somewhere. This could gum up the works fora  while, but someone does own the note and is owed money.

      •  No doubt. (3+ / 0-)
        Recommended by:
        Pozzo, buddabelly, jamess

        But who?

        And if a mortgage has been securitized, can any individual recover more than their share of the security- ie, I own three percent of XBond, which was based on a thousand loans. In any one proceeding, can I collect more than .3% of any one property?

        What're collection costs like in this kind of scenario? If we've had 200 transfers of a title and now we have to retroactively collect 400 signatures ( two on each transfer) from folks who should have done it sometimes a decade ago- that's a clusterf#ck. Ya only need one person out of the chain and now you need to establish legitamacy of another signature...

        I dunno. This is a chain of ownership mess. We're gonna have shareholders who just don't respond, folks who can't be bothered and are overseas so can't be forced...

        In theory it's pretty simple. I wouldn't want to be the clerk.

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