For lack of a better word, "The Government" is pressuring (sorta like
a non-binding resolution) the loan servicing industry to freeze
foreclosure proceedings and then to modify loans at risk of
foreclosure to keep owner-occupants in their homes. They're talking
about freezing ARM rates at the 'teaser' levels from one to five
years. Keeping families in their homes is ideal, and I hope damage
caused by the 'subprime cherynoble' can be reversed or at least
arrested.
The complexities and cross securitization of mortgage debt will be
anything but easy to unravel which was brought to light by an Ohio
Circuit Court's recent ruling, essentially tossing out 14 foreclosure
lawsuits because the 'lender?" could not legally establish its
standing and right to foreclose.
To paraphrase the judge's ruling, "The right to collect payment from
a mortgage loan doesn't necessarily give that party the right to
foreclose. The Plaintiff (who brought the foreclosure action) must
prove it has ownership of the mortgage and has the contractual right
to foreclose."
If loan servicers unilaterally froze interest rates, or restructured
loan terms, this action would cause a domino-like reaction adversely
impacting certain guarantees made to the investors who hold the
mortgages, or who have financial interest in securities
collateralized by mortgages. Contractual guarantees unilaterally
altered or rescinded result in lawsuits.
In my opinion, unless and until "The Government" can unravel the
clusterf__k and appease the global investment community who stand to
lose untold profits if interest rates are frozen, its 'pressure' on
loan servicers will meet deaf ears.
ForeclosureFocusUSA
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/AsburyPark/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/AsburyPark/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:[EMAIL PROTECTED]
mailto:[EMAIL PROTECTED]
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
