No Standing? No Foreclosure . . .
By Barry Ritholtz - November 24th, 2010, 10:15AM
The Bankruptcy courts are getting hip to the standing issue in foreclosure cases:
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
November 24th, 2010 at 10:42 am
Countrywide’s Mortgage Document Errors May Doom Bank of America
http://www.dailyfinance.com/story/credit/bank-of-america-mortgage-document-errors-trouble-countrywide/19728402/
November 24th, 2010 at 11:34 am
This is all well and good as long as it doesn’t result in more bank bailouts.
November 24th, 2010 at 11:45 am
Condo groups facing unpaid dues push for foreclosures
http://www.washingtonpost.com/wp-dyn/content/article/2010/11/19/AR2010111900181.html
This is actually very good news for a housing recovery. Banks have been sitting on delinquent “owners” avoiding foreclosures. I hope this catches on and forces the banks to either re-negotiate with the “homeowners” or foreclosure and market the property
November 24th, 2010 at 11:56 am
@DL
It already happened with HAMP, banks would accept to modify, get the government subsidies and then scrap the modification and still foreclose on people.
It’s time somebody stands up to those bastards.
I don’t think letting them get away with felonies because of bailouts is a good argument in a so-called democracy, how about bankruptcy?
Anyway, quite a few Countrywide loans may already have been dumped on Fannie Mae, the toxic dump.
November 24th, 2010 at 12:07 pm
The potential damage is huge…..
http://www.dailyfinance.com/story/streetwise/foreclosure-mess-devastating-consequences/19722298/
http://www.dailyfinance.com/story/credit/banks-stress-tests-fed-mortgage-documentation-mess/19723775/
November 24th, 2010 at 1:30 pm
Remember that an institution with no foreclosure right has no right to modify the loan… this complicates any modification issues. The mortgage market is worse than “ugly.” As far as bailouts go – I believe we just had an election which indicated that Americans aren’t interested in more bank bailouts. It’s my guess that Bernanke saw this coming which resulted in QE2.
November 24th, 2010 at 1:48 pm
Election or not, there WILL BE MORE BAILOUTS. Mark this post.
November 24th, 2010 at 1:49 pm
In fact bailouts are taking place as we type here today.
November 24th, 2010 at 3:20 pm
@BuffaloBill
“Judges in civil cases do not want to see an absurd outcome. Rewarding either the homeowner (free house!) or the lenders (No penalty for massive screw ups!) would offend those principles of equity and fairness.”
http://www.ritholtz.com/blog/2010/10/the-foreclosure-mess/
That was from BR some time ago and I believe the right way to do it is to force banks to settle the matter before it even gets to court.
Can’t find the note? then do something for me or it’ll drag on for years.
November 24th, 2010 at 3:23 pm
BTW, this is the proposed order.
We don’t know what the judge will actually order yet — but the assumption was that the judge wold be amenable to a variantof this
November 24th, 2010 at 3:50 pm
@beaufou – I agree with BR that judges dislike absurdly unfair outcomes as much as anyone. My point was simply that if you don’t have the rights of foreclosure, presumably you also don’t have any rights to modify. Both would, I should expect, require appropriate paperwork?
November 24th, 2010 at 4:25 pm
@BuffaloBill
I agree with you, but the loss of paperwork is a dead-end, and this has to solved in fair a manner.
(Every foreclosure is a waste of potential wealth)
However, the presumed owner of the loan should only be able to modify as some may have found a way to skip a step and receive subsidies while not providing any kind of service.
BR, I know, : )
November 24th, 2010 at 4:26 pm
in a fait manner, sorry
November 24th, 2010 at 6:17 pm
This is good news for those that believe “in rule of law”!
November 24th, 2010 at 6:18 pm
What concerns me is that the regulators feel a need to ensure bank survival above all else.
The borrower wasn’t paying his mortgage is not the core issue here. Banks need to follow the law and p;produce the note.
November 24th, 2010 at 10:22 pm
Jesus Christ, sorry about the failed attempt at correcting myself, I was using a deficient system.
again: this has to be solved in a fair manner.
November 24th, 2010 at 10:51 pm
Why shouldn’t we have all mortgages or deeds of trusts with the promissory note and all subsequent assignments recorded in the local recorder’s office? If a bank is unable to demonstrate clear title publicly, then they would have to cut a “fair” deal with a delinquent borrower. Either modify the loan, short sale, deed in lieu, but at least begin to work through some of the inventory.
November 25th, 2010 at 8:21 am
so every mortgage – and the home behind it – that flowed thru the MERS grinder could have a clouded title and impaired value.Will we see yard signs ” For sale by Owner”, never been MERSed”