As near as I can read, thus far almost all of this comes from Foreclosures bringing the poorly documented transfers to light. I have heard/read stories of multiple banks trying to foreclose on the same property each claiming to be the sole note holder.
Wait a few years as the economy starts to recover and a segment of homeowners go to refi or sell and find they cannot refi or have to sell at a discount due to clouded title. Will be interesting to hear what the they are all deadbeats crowd will say then.
Exactly! The issues turning up now with the bankrupcies are just the canary in a coal mine. A lot of folks screaming about deadbeats today will be yelling even louder years down the line when they can't sell their house because they can't get clear title. Too many people are insanely short sighted. Little wonder our republic is being flushed down the crapper.
As near as I can read, thus far almost all of this comes from Foreclosures bringing the poorly documented transfers to light. I have heard/read stories of multiple banks trying to foreclose on the same property each claiming to be the sole note holder.
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You’ve got it ,, by intentionally not transferring physical notes to the trust AS REQUIRED BY LAW (and common sense) the wall streeters were free to sell the same loan into multiple MBS’s ,, there is a famous case of a single $350,000-ish loan actually accounting for $93,000,000.00 in sales to investors... as long as the loan “failed to perform” the investors would never realize that they were had because they would be getting the expected return from a dead loan , $0 ...
Did they do that intentionally... I don’t know ,, but it happened .. it seems to have happened most often when they were at a “crunch time” and the MBS had to have it’s full complement of loans. Somebody probably just cut/pasted a list of REALLY BAD loans into a MBS whenever they needed a quick $10 or $20 million to finish one up... OR TO ENSURE A REASONABLY GOOD MBS WOULD FAIL SO THEY COULD COLLECT THE “INSURANCE”.