Robosigners and the Trouble in the Housing Market
We are all yearning for stability in the housing market so inspectors no longer have to deal with foreclosure issues and bank owned properties. However, it doesn’t appear that could happen anytime soon. In my classes around the country I’ve tried to explain how the real estate market got so bad with the sub-prime loan mess. I’ve explained that a real estate mortgage is not held by one lender but by thousand of investors who own a tiny piece if it after it has been bundled into a security sold on Wall Street. The robosigner scandal shows that the lenders really don’t have a clue as to where all of the paperwork from these loans is located. In some cases, there isn’t a person anywhere who can sign an affidavit to support a foreclosure because the paperwork is simply lost in the black hole of the mortgage securities hidden fortress. There is a fear this is going to drag out the crisis as lawsuits and investigations continue to find out what the financial industry was really up to in creating these monstrous financial inventions. There’s a good analysis of the potential problem at http://www.huffingtonpost.com/2010/11/16/robosigners-foreclosures_n_784098.html?utm_source=DailyBrief&utm_campaign=111610&utm_medium=email&utm_content=NewsEntry&utm_term=Daily+Brief
