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WHO HOLDS THE TITLE TO YOUR MORTGAGE PART 1

Posted by Percy A Lowe on March 25, 2013 at 7:30 AM

So who holds the title to your house? Every month you have to pay your mortgage to some anonymous bank or lender. This is the payment that you promised to make each month in exchange for the privilege of being able to buy your house or condominium. What most home owners don't know is that they don't really owe anything to that specific lender that they send thousands of dollars to each month. In reality, that company never actually loaned you any money for your home. In truth, that big bank is actually just servicing the "true" investor of your mortgage. The ironic thing is in most cases, you don't even know who is in point of fact getting your hard earned money.

The issue of who owns your mortgage is especially important in the event that a bank is trying to foreclose upon your house. One of the reasons for this is that in order to conduct a foreclosure, many states, including Massachusetts, requires that the party conducting the foreclosure prove that they have standing to foreclose. That is, they must demonstrate the proper paperwork to show they actually own the mortgage and have a right to foreclose.

This become a major issue, back in the mid 2000's when capital investors started selling hundreds if not thousands of residential mortgages and bundling them together in securities, and selling them as packages. What happened is that so many mortgages were buddle together that in many situations, the paperwork was not transferred and now the original proof of ownership is lost forever. Making the situation much worse, many banks created foraged counterfeit documents assigning mortgages to cover their tracks. The problem is that the bank must prove everything was done properly and that the owners must be able to prove they hold the notes in order to transfer title, or foreclose.

Often Americans doesn't know how the system works when it comes to buying a home. There’s a strong lack of education everything is about buying. We are so ready to own a home that we over look the most important part that is education. Because we lived in a home with our parents are been around home ownership growing up. We think we ready to buy a home but if you ask your parents who own their mortgage they couldn't even tell you. Well the goal is several things when it comes to purchasing a home. Hopefully over these next few blogs I can cause a buzz in someone’s mind to want to know more than just I just gave my money to someone I don't know.

 

Categories: Mortgage Advisory

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