Posted on 01/24/2011 9:07:05 AM PST by Kartographer
Federal bankruptcy judges in Delaware are due to hold separate hearings Monday on requests by two defunct subprime mortgage lenders to destroy thousands of boxes of original loan documents.
The requests, by trustees liquidating Mortgage Lenders Network USA and American Home Mortgage, come despite intense concerns that paperwork critical to foreclosures and securitized investments may be lost.
A series of recent court rulings have increased the importance of original loan documents, holding that they are essential for investors to prove ownership of mortgages and to have the right to foreclose.
(Excerpt) Read more at news.yahoo.com ...
PING!
Of interest PING!
“Got to get this stuff destroyed if they are to cover their trail.”
That was my first thought.
Yep, can’t afford a few hundred bucks a month for a large storage area to let them sit there, we have to destroy them instead.
With all the BS going on with these companies and the foreclosure problems arising from them this doesn’t pass the smell test. If these judges allow this now they should be disbarred.
Note that the “benefits of government purchasing power” works even when storing cardboard boxes.
18,000 boxes cost $16K a month to store? You’re telling me that the government pays 89 cents a month to store a cardboard box in dead storage?
I think I just came up with a great use for the headquarters of the Department of Education.
Hey wait! On second thought I am almost positive my mortgage was sold through American Home Mortgage years ago. I still have my original copy of it but if they want to destroy their only legal link to my home then okay by me, hell go ahead and burn away!
Allowing over 3 cubic feet per box, which is probably larger than they run, you could easily put these all into climate-controlled storage here in FL for less than $700/month.
The judges have to allow it. It’s a big can of worms that they hadn’t planned on having to deal with (I mean, really, who gave these uppity homeowners the idea to ask for the law to be followed?).
Iron Mountain Inc. is more than just climate-controlled storage. I don’t know about you, but I’d like my financial documents to be stored in a secure location.
Climate-controlled storage may be just a little better than destruction.
Maybe.
Maybe not.
All depends on what’s in the files and how secure it is(n’t), I suppose. :-)
$700 a month seems dramatically low, I’d estimate 7 per layer, 3 high on a 48*48 pallet, stacked two high. 42 per pallet = 428.5 pallet footprints. Generously, 5 * 5 per pallet = 10,700 sq ft. Buck a square foot is almost $11K/month without the slightest attempt to economize.
We’re probably getting off pretty easy here; left to full government supervision I’d have to estimate the bill as getting up to the $40-$50K range.
Then again, the dual garages of about ten foreclosed houses could do the same thing, for free.
The real issue is have they indexed the documents to allow retrieval? If that hasn’t happened they might as well be destroyed. An Army Corps of Engineers office stored a lrage body of work somewhere offsite, A latter commander ordered a house cleaning and the index was inadvertantly thrown out. They have no way to retrieve anything in storage.
We had a copy of a report locally produced by the Army in 1970 that they had “lost” through the index fiasco. It was a very pertinent document needed for a later study. The Army was very happy we had a copy.
Yep, those original docs are proof of fraud.
Obvious, isn’t it.
I think you have your finger on it. I think they have these huge piles of docs and no way to index them.
On second thought, methinks I dropped a decimal point in there somewhere.
Thanks.
That’s what I get for running calcs in my head.
Quite understood! The stuff that drops off the calcs I run in my head could pay a few months rent for most o’ them boxes.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.