People ask me, will they really settle? Of course the question is from borrowers and they are asking if they can actually do something about the millions of foreclosures, default cases and upside down equity cases totaling more than 10 million homes in the U.S. alone. The answer is yes, especially now — because the financial institutions are doing everything they can to make it LOOK like it is business as usual. But the markets are far more fragile than they are letting on. So in order to avoid a plethora of lawsuits in which the truth comes out on the front pages of every newspaper, they are seeking various settlement opportunities with the victims of these mortgages and notes.
Be sure, in your settlement to make sure you have no deficiency judgment exposure and make doubly sure that whoever you re dealing with proves beyond any doubt that they actually have title to the mortgage and note. I have been personally apprised of large situations where the “lender” “bought back” the loan. I was the messenger bearing bad tidings:
WHERE THE NOTE AND MORTGAGED WERE SECURITIZED AND SOLD OFF, THE LOAN THEY “BOUGHT BACK” THEY BOUGHT FROM SOMEONE (E.G. FREDDIE MAC, FANNIE MAE ETC.) WHO DES NOT OWN THE MORTGAGE AND NOTE. THUS THE LEDNER IS GETTING A DOUBLE HIT. THEY BOUGHT NOTHING WITHOUT KNOWING IT, THE SELLER SOLD NOTHING WITHOUT KNOWING IT AND SOMEWHERE OUT THERE IN INVESTORLAND, THERE ARE HUNDREDS OR PERHAPS THOUSANDS OF INVESTORS WHO HAVE AN INTEREST IN YOUR MORTGAGE AND NOTE AND WITHOUT WHOSE SIGNATURE, YOU MAY WELL STILL BE BOUND TO THE SAME MORTGAGE AND NOTE YOU THINK YOU ARE SETTLING. BE CAREFUL!!!
Fed might accept foreign collateral: Kohn
Should broker-dealers have regular access to funds, or only in crises?

Filed under: bubble, CDO, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage | Tagged: credit crisis, DEED IN LIEU, Fed, FINANCIAL MARKETS, foreclosure defense, FORECLOSURE SETTLEMENT, FOREIGN COLLATERAL, mortgage meltdown, short sales |
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