Friday, February 22, 2008

Ooopsie!!

This is rich. Bloomberg (02.22.08):
"Joe Lents hasn't made a payment on his $1.5 million mortgage since 2002.

That's when Washington Mutual Inc. first tried to foreclose on his home in Boca Raton, Florida. The Seattle-based lender failed to prove that it owned Lents's mortgage note and dropped attempts to take his house."

Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish

"Subsequent efforts to foreclose have stalled because no one has produced the paperwork."

This may turn into a very big problem for our JollyBankers. "Judges in at least five states have stopped foreclosure proceedings because the banks that pool mortgages into securities and the companies that collect monthly payments haven't been able to prove they own the mortgages."

Proof? What's up with that? A lender's attorney is exasperated. "Requiring banks to produce the paperwork at a foreclosure hearing is a nuisance, said Jeffrey Naimon, a partner in the Washington office of Buckley Kolar LLP."

"'It's a gigantic waste of time,' Naimon said. 'The mortgage may have transferred five, six, eight times. It's possible that you don't have all the pieces of paper, but it was enough to convince the next guy in the chain. There's no true controversy over whether the owner owns the loan.'"

Well then. Shouldn't have a problem proving that, huh Jeff.

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7 Comments:

Anonymous loki said...

Wow, how can that possibly true?

9:35 AM  
Blogger knobboy said...

My guess is that they're morons.

10:43 AM  
Blogger knobboy said...

Naw, as a practical matter, after you've turned a mortgage over three, four or more times, unless you're really organized, you lose track of what's what.

And if you can't produce the original note, you're gonna have quite a time proving the debtor owes you the money.

10:45 AM  
Anonymous loki said...

Fistly, lemme try again with a full sentence this time: Wow, how can that possibly be true?

Secondly, it's data, man, data! Who mishandles their data that badly? And who buys big ticket items with getting a frickin' valid receipt? It's worse than that, it's not getting the item you paid for. That is so out of control. House of cards we have here.

12:37 PM  
Blogger knobboy said...

I used to work with 'em back in the day.

Morons man. They're fuggin' morons.

1:49 PM  
Anonymous loki said...

Wait wait wait, one more time (hoisting the Scotch)

Firstly....

Pardon me for dragging down the place with my grammar and spelling.

2:54 AM  
Blogger knobboy said...

Dragging this place down?

Ha!!

Seeing as how it's such a high-class operation to begin with.

8:02 AM  

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