[dan on the right]

Two points.

Agreed, the paperwork is awful.

The mortgage servicers (usually not the same entity as the original lender, and often not the owner of the actual underlying debt) manage millions of mortgages. A process called MERS allows multiple assignments of the debt outside of the usual mortgage recording process to permit the sale and resale of mortgage paper. MERS was created with the blessing and assistance of Fannie and Freddie and the entire securitization industry to facilitate the easy sale of mortgage debt among investors. When tens of thousands of borrowers stop paying, the servicers have an obligation for the people holding the debt (often there is no one owner but multiple owners of a bond which was issued in the security) to either get paid off or start a legal action. Their bond documents don't usually permit them to cut deals. The “big lenders” is a misnomer. These companies identified in the press usually don't even own the debt, but are merely servicers. Agreed, that is no excuse; the paperwork should be accurate and someone should look at the file and do the right foreclosure documents.

All that being said, the servicers should just hire more people and do the paperwork for the foreclosure correctly. The restructure plans have been proven time and time again not to work. That is what most are doing, Just redocumenting the default (easy - no payment for many months or years) and refile. Then, of course, the judges who are sympathetic sit on the filings for many months. In NY it takes over 2 years to foreclose downstate; NJ is the same.

Why do you think Fannie Mae has to stay in business? Because traditional lenders don't want to do this business without the ability to foreclose if the borrower stops paying. So they originate the loan, sell the debt to Fannie (Freddie or FHA) and service the loan (keeping the customer) for them.

If you don't allow Banks to enforce their docs they simply won't lend anymore or charge more. That is where we are headed.

Second, tell me what fraud the lenders committed that caused this? The lenders were stupid, granted, in giving loans to people who didn't deserve them (but since they sold them, they didn't care); but how did they commit fraud on the consumer? Was the rate different than the docs? Were the terms different than the docs? Did they give them less money than agreed? Right or wrong, the borrowers received the deal they bargained for. If they didn't understand the terms, is that the lender's fault?

The fact is that the borrowers signed the notes and should bear some responsibility. Right now, in hindsight, it was a pretty good deal; - put no or little money down, buy the house, the crisis comes along, stop paying, and live there mortgage free for a few years! You have little equity in the first place. Nice gig.

[Kartographer]

"Agreed, the paperwork is awful."

Auful? You do understand that it's just a little bit worse than awful? TRY ILLEGAL, Try if you or I was to submit the same type paperwork no matter how good our case was it would not only get our case thrown out, but we would end up paying a fine if not going to jail. He is where we differ the law on real estate transaction are very strict they need to be because property changes hands and everything done to and with a property effect any and every future owner.As I said the foreclosure laws have not varied that much in all the years they have been on the books. These laws not only protect the rights of lenders and those being foreclosed upon, but all property owners. There must be a strict and orderly procedures for transferring property or the whole system becomes meaningless. There is also the fact that these people knew that the paper false and many of the lawyers sworn Officers of the Court who then submitted to the court fraudulent, perjured and illegal and just like you the are fine with it. I guess the ends justify the means? I'll as you again; When did the failure to honor a civil agreement become more serious than the committing of multiple felonies in multiple cases? You say that its OK because MERS was created with the blessing and assistance of Fannie and Freddie so what you are saying is that all you have to do to usurp the laws of 50 states is to get the blessing of some quasi government back entity and you are GOLD! If the law needs to be changed when have legal ways to change them and they usually involve elected state legislatures, but I guess that to burdensome for 'TBTF'. If you allow big corporations and quasi government bureaucracies to over rule the laws written by the elected legislatures no matter how good, bad or indifferent they might be you are killing the Republic as the Republic lives or dies by the rule of law. The The “big lenders” is a misnomer you say, true they don't own the debt, but they help created they sold it re-solded and resold it again. These companies have created a system where they make money from everyone and if they finally do get in a position where they lose the government compensation them. Nice system isn't it? Yes many of these companies are just the servicers have an obligation for the people holding the debt (often there is no one owner but multiple owners of a bond which was issued in the security) but who created the bonds? Face it under existing law these bonds have nothing to secure them because of the way the were created and who's fault is that? The law in most states is that only the person actually owed the money can foreclose and who would want it any other way. If we except your way any one could just 'create' paperwork in their back-room and foreclose on whom ever they want. Non it isn't that I don't want to allow Banks to enforce their documents I wanted them punished when the knowingly summit false and I don't want any foreclosures granted (no matter how justified) based on perjured statements and forged documents. What harm have they cause, nothing less than to disobey the law as written in an attempt to undermine the system for no better reason than their convenience. How would you like to see these same type 'documents' make their way into other legal proceedings? I'll tell you what how about you make up a list of other legal proceedings that should allow without question perjured, false, forged, post dated, etc documents? I look forward to seeing your list.