In case you had never noticed, legality and morality have absolutely nothing whatsoever to do with one another.
The fact of the matter is the mortgage industry decided to make bad loans, bundle them up and get rid of them. The refinance industry was a money-churn, and they could care less what happened with the loans after they got rid of them and got their money.
But they made a mistake. They did not maintain the legal documentation required to prove their loans.
In the process of churning faulty loans, these companies participated in inflating the value of houses far beyond their actual value because money was artificially cheap.
We need to get back to the old mortgage model, where banks actually have a stake in making good loans.
Having the crooked companies that bundled bad loans together lose their asses is a good start.
Odd how your all-so-concerned about the mortgagees enforcing their legal rights, but you are not the least bit concerned about the immoral practices of the banks that got us into this mess.
Why is that?
My only question is how can I make a killing in all this stuff now?
You seem very intelligent so let me ask a hypothetical…
Let’s say I get a home loan and I sign a promissory note and a deed of trust with bank ‘A’.
Not wanting to hold my note for twenty years Bank ‘A’ then sells the loan to bank ‘B’.
Bank ‘A’ marks the promissory note in their records as “PAID IN FULL”, and then transfers the deed of trust to bank ‘B’.
I run into hard times, can’t continue paying my mortgage, and bank ‘B’ decides to foreclose.
I was not a party to any transaction after I signed my original note, which is now marked in bank ‘A’ as “PAID IN FULL”, and since bank ‘B’ doesn’t own any other promissory note signed by me, what legal duty do I have to pay bank ‘B’? None as I see it. In fact I’d consider the payoff of my original loan with bank ‘A’ as a gift to me from bank ‘B’.
Now, can I go after bank ‘A’ for collecting mortgage payments on a loan their records indicate is already paid in full? I get a free house and all prior mortgage payments returned. Not a bad deal.