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View Diary: Who Owns Ohio's Homes? (16 comments)

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  •  Part of a *lot* of illegal bank activity (2+ / 0-)
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    phonegery, Toon

    The widespread falsification of mortgage documents has been documented in court in Florida.  It's now showing up elsewhere., foreclosurehamlet, Matthew Weidner, and several others have been keeping track of this stuff from "ground zero".  There've been reports at Naked Capitalism and Zero Hedge (mostly originating from one of the specialist foreclosure case bloggers).

    A lot of it originates with something called MERS, which was a bankers' scheme to evade mortgage recording fees and land transfer taxes while "securitizing" mortgages.

    Unfortunately, they never bothered to get remotely competent lawyers to design MERS, so practically all mortgages run through MERS in any state except Minnnesota (where the legislature passed a special law for MERS's benefit) were never legally transferred from the original issuer.

    Faced with this, the banks couldn't foreclose legally, so they hired foreclosure mills to fabricate and backdate the missing documents.  These are the ones with the defective notary seals which Secretary Brunner is reporting on.

    Tip of the iceberg.

    -5.63, -8.10. Learn about Duverger's Law.

    by neroden on Sat Oct 02, 2010 at 11:22:44 PM PDT

    •  How long do you think it will take (1+ / 0-)
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      to clear up 95% of the legal mess they are still creating? Will they end up overwhelming the courts, with the result that properties will end up in limbo for years.

      •  Potentially as long as the houses. (1+ / 0-)
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        But it's likely that if the law comes up with a standard solution then it becomes a predictable risk and insurable. Title insurance may become more expensive.

        They say a little knowledge is a dangerous thing, but it's not one half so bad as a lot of ignorance. Terry Pratchett

        by Toon on Sun Oct 03, 2010 at 07:28:47 AM PDT

        [ Parent ]

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