Foreclosures Stopped by Courts

One of the NCREI Investors sent an article to me yesterday referencing an interesting turn of events.

Court rulings may make it tougher for holders of mortgage-backed securities to take back the keys…
The problem stems from a shortcut that many players in the fast-moving securitization business have used in recent years. Normally, when a loan is sold, a simple document is prepared showing that the debt and any collateral attached to it has been transferred to the purchaser. That piece of paper is called an assignment. But in buying up thousands of mortgages at a time, Wall Street commonly skips this step, which requires separate paperwork for each loan. Instead, the industry customarily relies on a lengthy contract, known as a pooling-and-servicing agreement (PSA) to spell out arrangements for all of the loans in a pool. But, as some recent court rulings indicate, a PSA may not be good enough when it comes time to foreclose.

Read More

Will the Foreclosure Bailout Plan Save Us?

The U.S. Treasury Department led by Henry Paulson, Treasury Secretary is working on a plan to temporarily freeze the interest rate resets common in many sub-prime mortgages. Los Angeles foreclosures predominantly have this type of loan. Will this plan avert a housing disaster locally or nationally?

Read More
Skip to content