Bank can't prove it owns the mortgage, Judge writes off $460k debt


	Bank can't prove it owns the mortgage, Judge writes off $460k debt

Spiritualmonkey

10-29-2009 12:32 AM

125 views

tags:

evictions, econopocalypse, real-estate, mortgages, wall-street, mortgagte-backed-securities

Spiritualmonkey says:

This is why Rep. Kaptur was telling people facing eviction to squat in their own homes, refuse to be evicted, and make the bank demonstrate in court that the debt is legitimate.

Possession is 9/10 of the law.

I predict that this is the first tremble of a massive shock-wave about to move through our economy.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/7c204be3-ed47-435a-a336-362a0d39ca76/C046EE62-A8DB-433D-A41B-58B896351295/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.dailyfinance.com/2009/10/27/who-owns-your-home-lost-paper-trail-allows-borrower-to-keep-her/" href="http://www.dailyfinance.com/2009/10/27/who-owns-your-home-lost-paper-trail-allows-borrower-to-keep-her/" style="font-size: 11px;">www.dailyfinance.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.dailyfinance.com/2009/10/27/who-owns-your-home-lost-paper-trail-allows-borrower-to-keep-her/"><DIV><SPAN>
</SPAN><IMG vspace="4" hspace="4" border="1" align="right" src="http://www.blogcdn.com/www.dailyfinance.com/media/2009/10/house_mortgage200.jpg" alt="" />Those complex financial instruments known as mortgage-backed securities, which famously caused so much damage in the banking sector and the nation's economy when the housing bubble burst, are causing another problem for some mortgage lenders: the inability to prove that they have a legitimate claim to homes entering foreclosure. </DIV></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.dailyfinance.com/2009/10/27/who-owns-your-home-lost-paper-trail-allows-borrower-to-keep-her/">This little problem led to a curious scene in White Plains, N.Y., federal court earlier this month when Judge Robert D. Drain eliminated more than $460,000 in mortgage debt on a delinquent borrower's property after PHH Mortgage failed to prove its claim to the property, as reported by <A href="http://www.nytimes.com/2009/10/25/business/economy/25gret.html?_r=1&sq=mortgage&st=Search&scp=2&pagewanted=all"><EM>The New York Times</EM></A>. In essence, the judge's ruling made the mortgage disappear.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.dailyfinance.com/2009/10/27/who-owns-your-home-lost-paper-trail-allows-borrower-to-keep-her/">So how was it that the mortgage company was unable to prove its claim? It goes back to those pesky mortgage-backed securities. Their structures are so complex that it's unclear what's in them</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.dailyfinance.com/2009/10/27/who-owns-your-home-lost-paper-trail-allows-borrower-to-keep-her/">notes that left a trail, proving who owned what, weren't maintained</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/C046EE62-A8DB-433D-A41B-58B896351295/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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