Toxic Titles: Part Two – “Don’t mind me if I put an extra lien on your home”, says bank.
December 14, 2009 by BankSlayer
Filed under Blog for Realtors
Continuing the “Toxic Title” issue
The second nasty title cloud appears when homeowners have modified their loan or taken the dreaded “HomeSaver Advance” which was rampant the last few years.
Let’s examine the result of a typical HomeSaver Advanced deal. Imagine falling several payments behind and now you owe the bank $8,000 in past due payments. We know most of these payments are mainly interest with a tad of principle tossed in (in the early stages of the loan). So now you have roughly $7,999 in past due interest. The bank rolls out the HomeSaver Advance. You sign on the dotted line, mail it back and “POOF” you are now current again. What happened? You just agreed to take the past due payments and convert it all to principle and add it to your loan balance. It will now show up a second or third lien on your home which will need to be paid off when selling or refinancing the home. This can quickly erode equity.
What about loan mod? Ok, let’s see…you borrower the money for the purchase from AmeriQuest, made payments to Countrywide, refinanced with Chase and now make payments to AHMSI. You fall behind and want a loan modification. AHMSI rolls out the red carpet for a HAMP loan modification. You sign away and make your trial payments. You decide you can’t make the payments and you need to sell. You get an offer and are ready to go to closing…but wait the Deed of Trust recorded on your home has one of the three previous banks and not AHMSI. Tack on a new “loan modification agreement” signed by you and recorded by AHMSI saying you agree you owe a huge amount and that it is all owed to AHMSI.
Can you see where this is going? Did AHMSI deliver to you a copy of the assignment of your Note from your previous lender? Did Chase release the refinance Note? These situations can be deal killers for selling the home.
- The Bank Slayer
During the housing boom, lenders passed around mortgages as if they were whiskey bottles at a frat party. Notes were lost, destroyed, sold into multiple pools. Mortgages were not recorded and exorbitant fees were collected by the big firms on Wall Street.
Now that the bubble has burst, “lenders” are trying to collect on loans they do not own, in most cases never lent a dime on the transaction, have no right to, or were paid 30 times over in bailouts, insurance, credit default swaps, etc.
They are doing this because they can. They are steamrolling the courts rocket dockets because hardly anyone is contesting their foreclosures. Think about it. If you could go into a court and file thousands of foreclosures a week, and only a mere 10% challenged the authority of the foreclosing entity, what would you do if you were the greedy bankster?
The crises is even worse in non judicial states…
In almost every case these pretender lenders do not and did not own the loan. Almost all loans during the boom were securitized and it was investors that put up the money. Not the banks.
Now these “pretender lenders” are trying to steal the homes by filing fraudulent assignments, by the thousands, to process the foreclosures.
Don’t believe me? See for you yourself.
4closureFraud dot wordpress dot com