Sunday, July 27, 2008
In their rush to get rich
The players in the Great Mortgage Scam were careless in their documentation. Most people who have bought a home know that the reason you have a lawyer is to insure that all the paperwork is correctly completed and in order, because a simple mistake can jeopardize your ownership. Gretchen Morganstern writes about the increasing number of foreclosure proceedings going in favor of the homeowner because the trail of ownership was poorly or incompletely documented and no one can prove to a judges satisfaction that they own the mortgage.
The problems associated with banks that begin foreclosure proceedings when they do not have proper legal standing are now looming larger in the mortgage meltdown. Loans were heaped into trusts with little documentation of ownership or proper loan assignments — it was all about volume and the fees that came with it — and now that sloppiness is hurting both lenders and borrowers.Thank goodness there are lawyers and judges who believe in following the law.
Mr. Rothbloom said he had another case in which the lender’s representative has been unable to prove ownership for two and a half years.
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