My meager knowledge of these legal matters has me understanding that...
If say, Entity A forecloses on a property, then Entity A can't be in line to receive any of the proceeds of a subsequent or simultaneous Bankruptcy.
Now, I know many people carry credit cards or other lines of credit and/or unsecured credit with the same Entity as nominally holds their mortgage... This is especially true due to the fact so many Mortgage Sausages were made (and continue to be made) in this securitization fever.
The
Law of Large Numbers tells us this has happened, and probably happened many times, due to the large number of foreclosures and relatively small number of financial institutions involved.
It sure seems that (along with getting big slices of the bailout TARP, also paid for by people who are potentially foreclosed on) the Financial Institutions are claiming to be owed money they really shouldn't be getting... Legally, anyway.
Am I seeing this correctly... Any other opinions?
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