Heh. While that's true, it doesn't change the obligations of plaintiffs attempting to foreclose- to prove that they have standing to do so, and to follow the procedures set out by each state.
The sad truth is that bankers were in such a big hurry to offload crap MBS onto investors that they cut a lot of corners, and that now jeopardizes normal foreclosure proceedings.
There are other moral considerations as well. Structuring of MBS sometimes allows servicers to foreclose on properties in circumstances where the investors have already been closed out, their interests reduced to zero. Their MBS is bankrupt, and will remain so. Ownership of the underlying assets has been sold for a nickel on the dollar to cash flush banks like HSBC.
Nobody offered to sell those assets to the actual occupants/ debt holders at that price, now did they? Hell no- they didn't even offer to restructure the deal at current market prices.
Funny how moral hazard at the individual level becomes windfall profit at the corporate level, huh?
People who can't pay their inflated mortgages obviously need to get beat down to preserve the system. If it wasn't that way, everybody would quit paying.
Here's an idea for people hopelessly underwater with monstrous payments in no recourse states having huge backlogs of foreclosures- quit paying, save the money instead. As the Bankstas foreclose on more and more people, by the time they get to you, they'll likely have flooded the market with housing, driving the price thru the floor. When they actually succeed in tossing you out, you may have enough money saved to just pay cash for a lesser dwelling...
It's a strategy that even Banksta scum could admire...
Has nothing to do with rush. Why do you hide docs or not bring them to court? because you committed fraud on them to get hairdressers $750k HOUSES. Then investors with real money can sue the fuck out of you.
http://www.nytimes.com/2010/10/24/business/24gret.html
Let review what really went down instead of LK's bankers version.
1. Banks made loans they knew could not be paid back. Citibank's Chief underwriter tells us this when he testifies under oath that Citi knew "60% of loans were defective in 2006 and 80% defective in 2007." Defective means not worth a shit, junk, garbage gonna default in bankers lingo. This is fraud by inducement.
http://fcic.gov/hearings/pdfs/2010-0407-Bowen.pdf
2. But they did not care. Why? Because they could unload them by slapping AAA on them and blowing sunshine up peoples behind in the form of MBS to your pensions, 401k, pers and whatnot. When you sell garbage to someone intentionally concealing it's garbage that's fraud too.
3. Problem is people who bought all that trash and paid good money for it were not getting returns expected because they were trash. Bankers still held too many. So market started going crazy some firms fell apart and whatnot.
4. Banks threaten us with "tanks in the streets" and extort us for about 700 billion bucks.
5. They get about 700 billion dollars but they don't buy up bad paper they instead got more money to speculate with (buy DOW low, commodities or insider trading that is blowing up now).
6. Instead accounting board, FASB, is extorted by Obama to shore up the bad paper; Marking these loans which everyone garbage at whatever the banks wished, instead of at their actual value which is about 40% after lawyers, Realtor, fees, restoration to the property.
7. But all this hocus pocus does not make the problem go away, as the bad paper is still there and the losses are still real. Cash flow problems are kicking with people not paying for two years and with no intention of paying. Can't pretend forever.
8. So they start going to court either as servicer or holder to get cash. But they sure as shit can't show the original note it might be shown original W2 was altered by the banks etc etc etc. MBS's who have been trying to get original note have also been stiff armed for years now. And they will never show it if they can help it because they would be sued into the ground for #1 and #2 above. Not to mention a pattern of fraudulent conduct gets to
racketeering. So they come empty handed just with their word. aka "lost note affidavit"
9. Banks start fraudulently robosigning for judges to see, sometimes dated after foreclosure date claiming they own loan or acting as servicer
http://www.pbs.org/newshour/rundown/2010/10/faulty-paperwork-lending-institutions-have.html
This is NOT about deatbeats, technicalities, or sloppy paper-work it's about doing their damnedest to hide all the fraud from from investors so they are not sued. From Feds they should be worried too but way Feds are aiding and abetting bankers seem to have little to worry about at the moment. If we ever got a President with BALLS there would certainly be some bankers in the penitentiary.
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