A recruiting firm out of Florida is hiring for this job that "shouldn’t exist" — default breach specialist — someone who would be in charge of locating missing documents required to complete broken chains of title on mortgages entering foreclosure, according to an article by David Dayen for The Intercept.
Lenders should complete all assignments of mortgage within days of the sale, according to the article. If it was not done, it would irreparably rupture the chain.
From the article:
The companies would seem to be looking for time travelers or magicians.
Or maybe they want to manufacture false evidence to introduce into courts as a means to take away people’s homes.
Without a chain of title documenting the sequence of historical transfers of title to a property, foreclosure proceedings cannot continue in a legal fashion.
For the most part, these breaches cannot be reversed, because the governing securitization documents, known as pooling and servicing agreements, specified a time limit for conveying mortgages into trusts.
Regardless of this rigid deadline, mortgage companies hired third parties to mock up after-the-fact documents, making it look like they held an unbroken chain of title and had the ability to foreclose.
Despite being fought in court on numerous occasions, companies continue to submit false documents to courts in foreclosure cases, according to the article.
Distressed sales account for 9.9% of total home sales in March 2016, and real estate owned sales accounted for 6.8%, according to a recent report from CoreLogic.
While these numbers continue to decrease, they are still above the pre-crisis levels of 2%.