There have been a few news stories coming out of Utah in the last year or so about some problems with foreclosures there. These stories don't seem to have gotten a lot of attention, but the implications of the events out there are enormous. The issue at hand involves mortgages that were extended to home buyers over the years and later bundled and sold off by the original banks. It turns out that some of the companies that now hold these mortgages may have to meet some onerous requirements before they can foreclose on them, since in those cases the mortgages were originally cast under Utah state law and are now held by investors or other banks that don't meet Utah's banking standards. There are some people in Utah living in their homes for months after the banks have started foreclosure proceedings, simply because they're trying to figure out how to unravel that convoluted mess.
” It turns out that some of the companies that now hold these mortgages may have to meet some onerous requirements before they can foreclose on them,”
Like having a copy of the signed mortgage they plan to foreclose on? Banks have it covered. Pay a company to forge the documents, problem solved.
Posted 2010-09-29 14:34
by Karl Denninger
Just Counterfeit Documents... No, Really!
http://market-ticker.org/akcs-www?singlepost=2190795