This is going to become a huge mess.
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A group of our neighbors helped a disabled woman that was getting foreclosed on. She had nowhere to go. It took incredible amount of digging to find the bank.
Definately something wrong. Those that say it is only deadbeats are ignorant of the situation. If you have not dealt with it first hand, you don’t know.
I do not believe the paperwork was never done. I figure it got bundled up and shipped off to the highest bidder and will show up eventually.
Just following Congress' habits passing major legislation !
People should go to jail over this, but will they ?
Let’s not BS people into thinking that most foreclosures are sending on-time payers out into the streets.
Couple of other twists I can throw in from direct experience.
1) I have a friend who has a GMAC Mortgage. GMAC was sold to - I think - Ally. Somehow in this process, my friends mortgage records became associated with an underperforming mortgage and was listed for foreclosure. He had copies of every canceled check showing he had paid each payment in the correct amount on or before it was due. It took a court order to stop the foreclosure.
2)I am seemingly one of the few whose mortgage was/is still owned by the originating bank. I could hand deliver my payment to the individual who did the loan for us. Said bank was acquired. About two months later, I got the first warning letter and penalties assessed for not paying my mortgage. Interestingly, through their on-line banking service they were writing the checks on our behalf and they were coming back canceled. Fortunately, the woman who did our loan still worked there and we were able to enlist her personal assistance to unravel the mess. No one we talked to on the phone would do anything but threaten us. My wife was nearing the edge. In the end, what had happened is the acquiring bank had a commercial account with the same account number as our mortgage. When the bank wrote a check on our behalf from our account to themselves for payment of our mortgage, they were depositing it in the commercial account. Clear as mud ‘eh?
So, responsible people paying their mortgages on time are being effected by this mess on the paying side. You could also potentially be effected on the selling side if no one can determine who owns your home when you try to sell it.
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