Much analysis can be found around the web re. the Massachusetts Supreme Court's recent Ibanez decision; I've just stumbled onto a most cogent and reasoned thesis on the subject, its history and links to other noted analysts.
The gist: The banks have blown it. They can't produce the valid documentation required by centuries of common real estate law and the purported reason that they can't produce them is that the documents will show that the banks failed to follow timely IRS procedures during the process of selling mortgage backed securities to investors. If they produce the notes needed to foreclose, they face the wrath of the IRS as well as the investors who will learn they have bought unsecured securities.
Period.
Many have called on President Obama to address the issue during this weeks SOTU address. He won't, despite pleas from Senators in his own party. It's too much of a risky mess for the TBTF banks that his administration currys favors to. It is up to the courts and the banks themselves to solve, if its solvable at all. Congress won't pass a law eliminating centuries of property laws to the detriment of mortgagees because the investors won't have it either, despite the efforts of the Third Waynesians.
I diaried earlier this week about Senator Merkley's proposal, it may find legs now. The President's and Geithner's HAMP deal is a joke. The CEO of MERS is riding off into the sunset with a suitcase full of cash.
Despite the shenanigans of the banks, mortgage servicers and MERS, many still choose to point the finger at those who can't pay their mortgage, for the myriad personal reasons they have, they are all painted as simple deadbeats. The way this is going down, many will soon be seen as lucky bastards, deserving or not. If the mortgage debts are unsecured by a valid mortgage, those debts become unsecured and dischargable. They would keep the house in a successful bankruptcy.
Read if for yourself, I tried to keep this as simple as possible, although it is an extremely complicated and volatile situation with the future of many banks on the precipice. Let us know your thoughts and other links you might have on the subject.
Mass Hysteria: http://mandelman.ml-implode.com/...