The foreclosure game: tricks and traps in the fine print

This time the big banks and mortgage servicing companies, with their long, one-sided fine print contracts, may have outsmarted themselves. The newspaper headlines and the network television news are blazing news of the erupting fraudulent foreclosure process. This long-overdue coverage is generating public visibility and suddenly hundreds of thousands of foreclosures may be questioned due to what one commentator delicately called “flawed paperwork.” That is a euphemism for fraudulently executed contracts violative of state laws regarding home title changes. As usual, the jig was up only after some lawsuits were filed by foreclosed homeowners asserting that there was no proof of ownership of the mortgage which is necessary to evict and take back the house or apartment building. Recall before mortgages were bundled, sold and resold as securities, the homebuyer got a mortgage from the local bank that held it as an owner. Then Fannie Mae and Freddie Mac would provide a secondary market for such mortgages to enhance the liquidity of the local banks to lend to more homebuyers.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please