None of that nonsense should allow a mortgagee who has defaulted on the mortgage to foregoe a foreclosure.
This removes all accountability.
It is wrong from a moral standpoint.
In case you had never noticed, legality and morality have absolutely nothing whatsoever to do with one another.
The fact of the matter is the mortgage industry decided to make bad loans, bundle them up and get rid of them. The refinance industry was a money-churn, and they could care less what happened with the loans after they got rid of them and got their money.
But they made a mistake. They did not maintain the legal documentation required to prove their loans.
In the process of churning faulty loans, these companies participated in inflating the value of houses far beyond their actual value because money was artificially cheap.
We need to get back to the old mortgage model, where banks actually have a stake in making good loans.
Having the crooked companies that bundled bad loans together lose their asses is a good start.
Odd how your all-so-concerned about the mortgagees enforcing their legal rights, but you are not the least bit concerned about the immoral practices of the banks that got us into this mess.
Why is that?
This in an interesting thought. For the first part, legally, there is the question of whom does the mortgagee pay? Legally? The 'No tickee, no shirtee' clause would seem to apply.
Morally, most would agree with you. I do. Someone should not benefit with our taxpayer dollars. This dichotomy is going to take a while to work out and be the topic of many cover stations.