The borrowers (in most all cases) won’t be able to keep their houses. Someone is still owed money.
The issue here is due process. There is a clear legal process required for foreclosure, and in judicial foreclosure states, a court hearing is required.
Making a fast foreclosure based on fraudulent affidavits might seem like it will speed up the resolution of the housing markets’ problems, but in fact it will set the stage for contests to titles for years to come. Title insurance companies will create carve-outs in the title policies, leaving homeowners, investors and possibly future mortgage lenders in danger of having a claim arise which was not quieted in this mess. There have been cases brought on a single property from two lenders, there have been foreclosures brought on a man who had *no* mortgage whatsoever. As I indicated on another thread, I had a UCC lien placed on our farm for a loan which I never approved or entered into.
What you need to know here is that the banks are corrupt. They might be owed money, but that does not exempt them from the law. The difference between a first-world nation and a third-world nation is the application of property law. In third world nations, people who get on the wrong side of the monied interests find they have no property rights.
“...the application of property law.”
This is what I would call the nub of the problem.
The housing market is so messed up with all of this title confusion, can the claim be made this country has LOST its property rights? If the title claims are unclear one end of this country to the other, doesn’t this wipe out and make property ownership “unrealistic”? Could this be the end game of the socialists that insisted on giving unqualified people mortgages?
How will the courts deal with this is going to be the question. So far, they are just now waking up and this process of foreclosures started picking up in 2008. Almost two years ago. The courts are late, and this country is losing its foundation.