Posted on 09/27/2009 4:32:21 PM PDT by dennisw
Yeah I’d say this might cause a glitch or two...
This is a complete misinterpretation of the decision.
For the uninitiated, your first clue that a “get out of jail, free” card had been discovered and that the link between a secured interest in the collateral and the mortgage loan agreement had been severed would be the total collapse of the financial sector. If you haven’t seen that, this view is wrong.
This is precisely what too much government brings: Loopholes, Red tape, confusion, ect. and as always the taxpayers will be left holding the bag.
You have a point but most people will never hear about this. Those that do will still make their payments if they can.
And this would not be the first time such institutions, in an attempt to cover their own asses ended up shooting themselves in the foot.
Wow! If there’s a loop-hole, you can always count on the bums and freeloaders to find it!
Let me understand your position. If a Main Street business man created a stupid financial product and it goes bad, he eats the loss because his business is too small to impact the country. However if you are a banksta, you can create a stupid and flawed product and if goes bad, he can have the government modify it because he is too big to fail. Sounds like we do need a little socialism/facism by telling the banking industry (and other industries) they cannot exceed a certain percentage of the GDP, otherwise they can act recklessly and recoup their losses by threatening our country that they are too big to fail.
Not sure how you got all of that out of my short post.
Most people will still continue to make their payments if they have the money. Because the alternative is to lose their home. Its only when everything breaks down will payments stop. Its all about confidence.
This decision won’t have an impact such as was suggested.
Remember during the campaign, the woman claiming Obama was going to give her a house, put gas in her car.........
Bet'cha we see it before very much longer.
Can anyone say US Supreme Court (USSC) here? Given all of the dangling strings and enormous impact, I see this as a near-certain USSC case and of more interest than even the Kelo Eminent Domain case. If the Wall Street Banks and Brokerage Firms can’t get their money back, they are BROKE in every way and what then for the Obama Administration, another bail-out?. As the great Arte Johnson would say in a faux German accent, “Verrrry Interesting”!
If the loan quasi-went to one of these MERC organizations, how would foreclosure be able to happen? The MERC organization can’t make it happen.
People are getting free automobiles!
Actually I have heard of recent bankruptcy cases here where not all the creditors show up
So the creditor that made your car loan is absent in court and you get your Lexus for free
I have heard of that
I should say, MERS.
How stupid is it to create a financial product out of a mortgage which doesn’t have any legal interest in the underlying property. What’s the other piece of this corpse/ghost type separation? Someone who has an interest in the property but is getting no income from it? What are our bankers smoking?
Yes, but most people won’t believe it. And banks will continue to call and threaten people. It would take a large percentage of people to stop making payments for this decision to have a major impact. I doubt that will happen until the Mugabe style inflation arrives.
Umm, as soon as grifters found they could buffalo the bank away after defaulting on their mortgage, everyone would know.
“What are our bankers smoking?”
TARP Money. The small bankers usually have pretty good practices. Its the big global banks that do stupid stuff like this. At least thats my experience.
Good decision. Every one who claims an interest in real property must file their instrument in the recorder’s office. Every one can then go there and search the property records to find who owns what. If you buy property, you record your deed. If the electric company has gotten the right to put a power line across your property, it records its easement.
When banks sell a loan, for decades they would file an assignment of the mortgage in the recorder’s office. You could then go to that office and see who owns your loan. But the big banks didn’t want to play by the same rules any longer. So they created MERS and now, as the case noted, it can be maddening to find out who owns your loan and who you are dealing with.
The banks should file their mortgage assignments and play by the same rules as the rest of us.
All well and good when the mortgage is sold and resold whole. Lots of mortgages were chopped up with one MBS holding the piece that gets the principle payments and another MBS holding the piece getting the interest payments
***MBS = mortgage backed security
I’ll bet some mortgages were cut into more than two pieces
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