General Discussion
In reply to the discussion: Obama to Grant Banks Robosigning Immunity [View all]ms.smiler
(551 posts)Thats a very good question. It would require a thorough mortgage loan audit. First, the mortgage loan itself should be checked for fraud. Next, the audit should determine which Trust supposedly owned the mortgage loan. Was the loan properly and legally pledged to the Trust? As you may know, it most likely was not legally pledged to any Trust. Was the mortgage loan illegally pledged to multiple Trusts? This often happened with securitized mortgage loans as part of the securities fraud that took place on Wall Street.
During the time a Trust supposedly owned the loan, what payments were applied to the loan? How did Credit Enhancements and Credit Default Swaps impact the loan balance? How did the Pooling & Servicing Agreement govern the mortgage loan and payments? Was the mortgage servicer obligated to make payments on the loan?
Until a full and complete accounting is made of the mortgage loan and all payments, it is not possible to determine if the loan was in default or not. The accounting that is provided to homeowners on Main Street is only a partial accounting of the loan.
Next, I would want to know what happened to the Trust that supposedly owned the loan. Is it still in operation or did it fail? Was it part of failed MBS that was sold off to the U.S. government or the Federal Reserve?
Was the foreclosure action brought in the name of a party other than a Trust? If so, how did that party supposedly come to own the loan? Was there an Assignment of Mortgage from the loan originator to the foreclosing party? If so, its very easy to determine it was a wrongful foreclosure. There would be gaps in the chain of Title. Somewhere in the chain, there should have been a Trust that legally owned the loan.
Did a supposed MERS official sign the Assignment of Mortgage? If so, the document is invalid and fraudulent as MERS has never legally created any Vice Presidents or Assistant Secretaries in accordance with Delaware law where they are incorporated.
dkf, if you remain focused on the debt that was created and the debtor without also examining the mortgage contract and the creditor side of the transaction, you will never fully understand a securitized mortgage loan.
Personally, Im not wondering if a friend of Sabrina1 was in default on their mortgage. Im wondering how many times the banks already collected payment on the loan from Swaps, Uncles Ben or Sam, PMI insurance, etc.