Banks Unable to Prove to Courts they own Pooled Mortgages

[Silverbird]

Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish

By Bob Ivry
Feb. 22 (Bloomberg) -- Joe Lents hasn't made a payment on his $1.5 million mortgage since 2002.
That's when Washington Mutual Inc. first tried to foreclose on his home in Boca Raton, Florida. The Seattle-based lender failed to prove that it owned Lents's mortgage note and dropped attempts to take his house. Subsequent efforts to foreclose have stalled because no one has produced the paperwork.
.....
Judges in at least five states have stopped foreclosure proceedings because the banks that pool mortgages into securities and the companies that collect monthly payments haven't been able to prove they own the mortgages....
http://www.bloomberg.com/apps/news?pid=20601109&sid=aejJZdqodTCM&refer=home

[rokid]

Silverbird,

Thanks for posting the article. Gee, I'd like to have a multi-million dollar loan in foreclosure. Maybe, I could get a free house!

The headline should read, Incompetent Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish. :laugh:

Say, does the F Fund hold these mortgage backed bonds?----Jim

[TradeApe]

Perhaps one of the major telephone companies should oversee WashMu's mortgage management. Lord know's that the telephone companies won't let you be a minute late with a payment.