Comments on: Securitization of Mortgages May Make Foreclosure Much More Difficult http://www.therealestatebloggers.com/2007/11/15/securitization-of-mortgages-may-make-foreclosure-much-more-difficult/ Real Estate Blog, Mortgage, and Development News Sat, 20 Mar 2010 11:25:08 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Allfinancehelp http://www.therealestatebloggers.com/2007/11/15/securitization-of-mortgages-may-make-foreclosure-much-more-difficult/comment-page-1/#comment-292394 Allfinancehelp Thu, 06 Nov 2008 11:10:32 +0000 http://www.therealestatebloggers.com/2007/11/15/securitization-of-mortgages-may-make-foreclosure-much-more-difficult/#comment-292394 Over the past few years mortgages have changed hands regularly as they have been securitized and traded on Wall Street and other exchanges. One of the biggest problems we face is that homeowners can not track down their lenders when they are facing difficulties to work out their problems. Instead of going down to the bank where you made your loan and talk to a loan officer who can help, you are trying to track down an accountant in Germany from a large bank who owns your loan as part of a 500 million dollar security.Could the possibility of costly paperwork clean up cause investors, servicers, and lenders to be more amiable to modification rather than foreclosure? Who knows but it could be interesting. Problem is, the assignments have to be cleaned up one way or another. Over the past few years mortgages have changed hands regularly as they have been securitized and traded on Wall Street and other exchanges. One of the biggest problems we face is that homeowners can not track down their lenders when they are facing difficulties to work out their problems. Instead of going down to the bank where you made your loan and talk to a loan officer who can help, you are trying to track down an accountant in Germany from a large bank who owns your loan as part of a 500 million dollar security.Could the possibility of costly paperwork clean up cause investors, servicers, and lenders to be more amiable to modification rather than foreclosure? Who knows but it could be interesting. Problem is, the assignments have to be cleaned up one way or another.

]]> By: JKB http://www.therealestatebloggers.com/2007/11/15/securitization-of-mortgages-may-make-foreclosure-much-more-difficult/comment-page-1/#comment-103864 JKB Thu, 15 Nov 2007 20:51:02 +0000 http://www.therealestatebloggers.com/2007/11/15/securitization-of-mortgages-may-make-foreclosure-much-more-difficult/#comment-103864 Nothing new has been added to the process. In this case, the judge demanded to see the proof that the bank had standing, i.e., owned the notes, at the time of filing to sue for default. Turns out the bank didn't have nice clean assignments, i.e., sloppy paperwork. Proof of ownership has always been required although apparently it became an informality of practice. With this order, more and more homeowner's attorneys will push the issue of standing rather than simply acknowledge it. This will slow the process in the short term until the lenders clean up their assignments. Tanta over at Calculated Risk has a good discussion of this issue. As she pointed out of more importance is; if the lenders have someone in the missing chain of assignments who has ceased operations, cleaning that up will be costly and lengthy since they can't just go back and get the proper signatures. Could the possibility of costly paperwork clean up cause investors, servicers, and lenders to be more amiable to modification rather than foreclosure? Who knows but it could be interesting. Problem is, the assignments have to be cleaned up one way or another. Nothing new has been added to the process. In this case, the judge demanded to see the proof that the bank had standing, i.e., owned the notes, at the time of filing to sue for default. Turns out the bank didn’t have nice clean assignments, i.e., sloppy paperwork. Proof of ownership has always been required although apparently it became an informality of practice. With this order, more and more homeowner’s attorneys will push the issue of standing rather than simply acknowledge it. This will slow the process in the short term until the lenders clean up their assignments.

Tanta over at Calculated Risk has a good discussion of this issue. As she pointed out of more importance is; if the lenders have someone in the missing chain of assignments who has ceased operations, cleaning that up will be costly and lengthy since they can’t just go back and get the proper signatures.

Could the possibility of costly paperwork clean up cause investors, servicers, and lenders to be more amiable to modification rather than foreclosure? Who knows but it could be interesting. Problem is, the assignments have to be cleaned up one way or another.

]]> By: Mark Harrison http://www.therealestatebloggers.com/2007/11/15/securitization-of-mortgages-may-make-foreclosure-much-more-difficult/comment-page-1/#comment-103597 Mark Harrison Thu, 15 Nov 2007 16:41:00 +0000 http://www.therealestatebloggers.com/2007/11/15/securitization-of-mortgages-may-make-foreclosure-much-more-difficult/#comment-103597 That's an interesting loophole. Do you know what proportion of mortgages in the US are securitised? Here in the UK, it's still relatively rare - some mortgages are sold on as complete transactions to other lenders, but not many are securitised. Mark in autumnul West Sussex, England That’s an interesting loophole.

Do you know what proportion of mortgages in the US are securitised?

Here in the UK, it’s still relatively rare – some mortgages are sold on as complete transactions to other lenders, but not many are securitised.

Mark in autumnul West Sussex, England

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