If at the end of a mortgage, by pay off or foreclosure, the original note is not returned, the property has a clouded, or toxic title. Subsequent buyers cannot get title insurance, and will walk away from buying your property.
Anyone glossing over this little 'detail' is likely ashamed to admit that they are paying premium 'real money' toward their home investment that has the possibility of a steep discount in value from a clouded title that they are unaware of. This would be a good time to ask your loan servicer for a true copy of the original note to your property.
I agree. Securitization, however, is not a crime. If they lose the paperwork, whatever, that house should rightfully belong to the owner, IMHO.
Now, after the securitization, the lying about the value of those various tranches...The intentionally misleading guidance is something that has merit.
Demanding the title paperwork, demanding the original loan paperwork and the entire chain of custody is exactly what is needed to unravel this mess.
Instead of throwing up their hands or demanding that the government ‘do something’ there’s no reason why banks, home-owners, private groups can’t band together to form a process to make this happen, and later use what they have learned to reset the ground rules.
One example of this kind of thing - similar but different - is the American Society of Mechanical Engineers. They are not government but they set the standards. You want to violate the standards and no one wants to do business with you, or you have to get the client to agree to waive these specifications specifically in any contract.
Fixing the blame never fixes the problem. Fixing the problem, fixes the problem.
What would you suggest if the loan servicer is not able to provide a true copy?
I know this is a dumb request, but please explain what securitized means. I've googled it, read about it and googled it some more. There's something I'm just not getting. Thanks.