Quote:
Originally Posted by Hank Chinaski
I am a stupid troll, i admit that. but months ago I posted that the banks were fucked in this foreclosure mess becuase many loans will not be fixable. there will be gaps in the chain of title they cannot fix and thus the deadbeats will be left in their homes.
I based this theory on this: Judges were telling banks to bring in their proof of ownership, and the lawyers didn't bring anything. I do not know anything about bank law (actually I know more than most posters here, but not enough to claim i know anything (hi GGG!)). I am however a lawyer. i know if a judge tells me to bring proof to his chmabers next tuesday, I will be there with 1) my evidence, if it exists, or 2) a new assignment to fix any gap, if such a new assignment could be obtained.
since lawyers were showing up w/o proof, I hypothesized that the entity that would have to sign the new document no longer existed and i saw no way for the deadbeat not to be left in the home.
the mob here called me ignorant, with the more polite assuring me there would be no problem.
Well, guess what, the deadbeats are being left. The bank that own the notes are not being challenged by anyone in the chain, the entity challenging ownership is the one that everyone must agree has no equity- the occupant.
I got a call from a family friend, the guy has a PhD, he was asking me how to prove a document is an original- he was in the middle of foreclosure as he had not paid a mortgage payment in a year. BUT the loan owner has a sloppy chain of title. the crazy thing is the friend thought the bank was evil and he was the good guy.
this has got to be a major hit that is still coming at the banks. unless congress somehow passes a "fuck the home occupant" law millions of people are going to suddenly own a home- no rent- they won't be able to sell it I suppose, but maybe can transfer their squatters rights?
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1. The problem with coming in with a new assignment is that they would have to restart the clock on the foreclosure--if the Lender wasn't the real party in interest on day one of the foreclosure notice, it was completely ineffective. So there wasn't anything to present in *that* case, but they could restart at the beginning.
2. Because of #1 and related and unrelated but similar problems, and also because of the robo-signer "scandal" and figuring out who's going to pay the out of pockets (the servicer *really* doesn't want to, because they got about tree-fitty to perform the role and are losing money just making copies), there are thousands of mortgages in default which are not being actively pursued for foreclosure. Also, the Lenders not knowing what the hell to do with the props after they become REO encourages delay, too.
3. Given the environment created by 1 & 2, and marginally ethical lawyers + whacky As-Seen-On-TV schemes (akin to credit repair), a lot of people believe that they have more defenses to foreclosure than they really have.
Thus, you have a lot of people who have stopped paying their mortgages, think they have a good legal position to challenge foreclosure when it comes, and a lot of Lenders who are extremely slow seeking their remedies* reinforcing the mistaken belief that there is a documentation problem that creates or strengthens defenses. This results in thousands of people staying in their houses for months or years w/o paying the mortgage, but not in any situation that would prohibit foreclosure, nor in any way reduce the principal owed (penalties and fees, there might be a decent argument, depending on how the assessing of them is handled).
*note: no laches argument, as the remedy is contractual, not equitable.
