How to Stop Foreclosure in Georgia
Foreclosures are coming to a halt while document problems are worsening. The lenders are failing to prove more often than not the ownership to the title of the properties being foreclosed upon. This is further vitiating the economic atmosphere of USA.
The borrower facing the threat of foreclosure is observing the happenings in dismay as time is running out. When the simple question is put to the bank asking them to show the note – the bank begins to stutter.
Lawyer Gary Klein represents the foreclosure victims. He said that often the banks really cannot produce the note. This has created a mega problem. He said, “The fundamental issue is that no one really knows who owns hundreds of thousands of mortgages that have been made in the last decade, and really no one really knows who has the right to foreclose”.
Often banks had not kept records of the original loan, or these are faulty about who are investors owning the mortgage. The matter does not end there. The issue is not whether the note is produced or not but if there is at all a note.
How has this situation arisen? The answer is not only complicated but huge in volume.
The sub-prime mortgages primarily contracted in the last decade were pooled and then sold in bits and pieces as securities to investors around the world. Nearly half of these mortgages were traded a minimum of four times before reaching the hands of the final investor. It has now become impossible to track the chain of ownership.
As per the law each time the ownership changed hands it should have been properly recorded and fees made. Digital forms would not serve the purpose – it should have been done on proper court paper that would have gone physically to each of the investors. But in the hurry and scurry dealing with millions of mortgages contracted the proper paper work just did not take place.
Law Professor Alan White of Valparaiso University had started making noises about it for quite some time. He said, “They devised various shortcuts with the assurance of some high-powered lawyers that these shortcuts were fully, legally equivalent to doing it the old-fashioned way. But nobody really knew for sure whether they were the full legal equivalent or not. And now we’re going to find out”.
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