“It turns out the banks did not, thus the property titles were lost in the selling and reselling of the notes. This will also impact the good homeowners because no one is sure if they will have a clear title which is needed to sell the home.”
The “property titles” have not been lost. The banks don’t hold title. They hold liens, which they record. This will not affect the good homeowners. When they sell their property, the title company will determine who is the noteholder, pay the noteholder, and obtain a lien release.
The media are whipping people into a frenzy over this. Deadbeats are using a technical problem — which ultimately has no effect on them — to stay in houses they are not paying for.
“The media are whipping people into a frenzy over this.”
Why did the banks stop their own foreclosures?