Here is the deal:
1. First step, the borrower (homeowner) signed a wet ink note/deed to borrow from the loan brokers. At closing, everything will be recorded in the county via the closing agent.
2. Sometime after closing, the broker sold the loan to the originator ( a bank TBTF). The broker was fully paid the loan and hence, no standing in foreclosure.
3. Then the originator sold [...]
What a disaster. If you can’t get title insurance you’re not going to take a chance on buying a foreclosed house. If the banks can’t unload (supposedly) foreclosed houses they’re stuck with them (maybe), no one knows what the true inventory of the housing market is… value of neighboring houses continues to go down…. to say nothing of the securitization of all those mortgages… [...]
This issue affects me personally. Lost job 12/06. Hung on as long as possible. But when push came to shove, missed a few payments.
Tried repeatedly to rework the loan with BAC, not knowing the loan had been securitized. BAC wouldn’t redo the loan in a way that worked.
BAC started foreclosure May 2010. June 2010, notice of default cancelled. June 2010 Note [...]