Sunday, August 29, 2010

Could a Legal Technicality Prevent Banks from Having the Right to Foreclose on 62 Million Homes?

A judge recently held that banks' electronic shortcut for recording mortgage information makes it impossible for banks to establish their rights to ownership.

 Oh Boy!
After all of the other home loan banking fuck ups in the last 20 years, it would really serve some of these banks right if they could'd foreclose on homes.
I need to check to see if my home is foreclosable, and take advantage of that loop-hole like is was a drunk sorority chick.

Over 62 million mortgages are now held in the name of 
MERS, an electronic recording system devised by and for the convenience of the mortgage industry. A California bankruptcy court, following landmark cases in other jurisdictions, recently held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles--and therefore to foreclose on mortgaged properties. The logical result could be 62 million homes that are foreclosure-proof.

Mortgages bundled into securities were a favorite investment of speculators at the height of the financial bubble leading up to the crash of 2008. The securities changed hands frequently, and the companies profiting from mortgage payments were often not the same parties that negotiated the loans. At the heart of this disconnect was the Mortgage Electronic Registration System, or MERS, a company that serves as the mortgagee of record for lenders, allowing properties to change hands without the necessity of recording each transfer.

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