ForeclosureGate

ForeclosureGate

ForeclosureGate

The banks want you to think that this is just a document crisis. Foreclosuregate is more about the mortgages and the transfer of ownership paperwork, than whether a robo signer signed the foreclosure documents. It turns out that the mortgage industry has pledged the same home mortgage for multiple mortgage backed securities. That means that there are multiple owners of the same mortgage. Bank of America has already filed court documents showing that is reality not fiction.

Funny thing, if the homeowner pledged the same house as collateral for multiple loans this is considered fraud, yet when the mortgage industry does the same thing it is a paperwork problem? What we have here is a mortgage industry generated Ponzi scheme that is about to come crumbing down.

The law requires that the actual owner of the mortgage is the only person or entity that can foreclosure upon a mortgage. So, who really owns these home mortgages? Think about it. The days of one bank owing your home mortgage are long gone. Your mortgage was divided into 50 billion pieces. In many cases, each piece was used to back a different mortgage backed securities and in many cases that same piece was used to back up many mortgage backed securities.

So do all the holders who hold your home as collateral to the mortgage, don't they all have to show up at once to the court to foreclose? Problem is that no one even knows which homes are backing up which securities. There is no database where you can type in a home address or mortgage number and find out if a home is part of one or multiple mortgage backed securities.

Next question, who is going to pay the bill for the mortgage industries Ponzi scheme. Most banks have already started the process of ensuring that the American taxpayer will foot this bill as well. Too big to fail means that there is no option of bankruptcy and therefore the taxpayer will once again take the brunt of the housing crisis created by the mortgage industry.

What does this mean for the average family? First this problem will make the foreclosure process harder and take more time, making now the perfect opportunity for families to determine if walking away is a good financial decision. Should you walkawayok? Second, buying a foreclosed property now became almost impossible; no title insurance company will insure these houses because title is in question. Finally, those who purchased foreclosed houses may be stuck with a house they cannot sell, a house they may not even legally own?

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